Digital Infrastructure Bill takes First Reading on 8 September with new IMDA data centre licences

Parliament took the Digital Infrastructure Bill on First Reading on Tuesday, 8 September 2026, clearing the way for new Infocomm Media Development Authority licensing rules on major data centres and cloud services.

The Ministry of Digital Development and Information introduced the Bill. Senior Minister of State Tan Kiat How leads the portfolio. A Second Reading is due at the next available Parliament sitting.

Tan Kiat How visiting Global Switch data centre for Digital Infrastructure Bill
Tan Kiat How at a Global Switch visit tied to the Bill. Photo: MDDI via CNA

Security rules for major data centres and cloud providers

One IMDA regime covers major co-location and cloud data centres with a critical IT load of at least 10 megawatts, and major cloud service providers whose Infrastructure-as-a-Service and Platform-as-a-Service revenue from Singapore users averages at least S$100 million a year over the three preceding years.

Those operators would need security risk management measures, business continuity and disaster recovery plans, and must report specified incidents and disruptions to IMDA. MDDI said the thresholds target operators whose disruption would hit the economy and society hard. The Bill sits alongside the Cybersecurity Act and reaches further into operational risks such as power, cooling, fires and other physical failures.

Ministry of Digital Development and Information logo
MDDI logo. Photo: MDDI

Energy-efficiency licensing from 3MW

A second regime licences every data centre operator with a critical IT load of at least 3MW. As a first step, facilities must meet energy-efficiency requirements, including Power Usage Effectiveness standards. The rules apply to existing and new centres, with room later for IT equipment and water-efficiency conditions after industry consultation.

MDDI and IMDA consulted on the draft from 1 to 22 July 2026 and received 25 responses. They said licensing and reporting will be streamlined where possible, existing standards recognised, and existing centres given transition time. CNA reported that Singapore has about 70 data centres, with MDDI expecting about two-thirds to fall under one or both regimes.

MDDI official crest mark
MDDI crest. Photo: MDDI

What comes next

The Bill also lets strategic, economic and green-energy commitments made when new data centre capacity is awarded, including through Data Centre Call for Application exercises, be locked in as licence conditions.

MDDI said the Bill will return for a Second Reading at the next available Parliament sitting, with debate tentatively lined up for October.

Vanessa Koh
Vanessa Koh
Vanessa Koh is Little Big Red Dot's Tech & Auto Editor. She makes technology and cars accessible and practical for everyday readers. She translates specs into real-world value and tells you whether a new phone, laptop, smart device, or car is actually worth your attention and your money.

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