SiINGAPORE, TOKYO, August 26 2024 – Singtel and Hitachi, Ltd. have entered into a significant partnership to propel the development of next-generation data centres and GPU Cloud services across Japan and the broader Asia Pacific region. The two companies have signed a Memorandum of Understanding (MOU) under the leadership of Singtel’s Digital InfraCo unit, focusing on combining their respective strengths to accelerate enterprise digital transformation through the adoption of artificial intelligence (AI).
This new agreement marks an expansion of the partnership between Singtel and Hitachi, which began in June 2024. Previously, the companies collaborated to integrate Singtel’s Paragon platform—an orchestration platform for 5G, edge computing, and cloud services—with Hitachi’s AI applications. This integration was aimed at streamlining AI deployment for Hitachi’s manufacturing operations and other enterprise customers. The success of this collaboration has laid the groundwork for this expanded partnership, which seeks to address the growing demand for AI and cloud services in Japan, one of the fastest-growing data centre markets in the Asia Pacific region.
The partnership between Singtel and Hitachi is set to revolutionize the data centre landscape by focusing on sustainability and efficiency. Singtel brings to the table its extensive expertise in data centre management, connectivity, and technology platforms, while Hitachi contributes its end-to-end data centre integration capabilities, including green power solutions, cooling systems, storage infrastructure, and data management.
“Our strategic partnership with Hitachi, a leader in digital systems and services fields, opens up new opportunities in a strategically important and expanding Japanese market,” said Bill Chang, CEO of Singtel’s Digital InfraCo. “Building a strong ecosystem of partners has always been a priority at Singtel to better serve our customers and broaden our global reach. We look forward to bringing our collective expertise, digital assets, and solutions to help more enterprises innovate and transform their businesses and operations through the cloud and AI. As we scale our digital capabilities with our partners like Hitachi, we aim to become a leader in the Asia Pacific region.”
With the rapid rise of AI and cloud computing, Japan’s data centre market is experiencing unprecedented growth. The market is projected to achieve a compound annual growth rate (CAGR) of 9.8%, reaching a valuation of USD 5 billion by 2028, according to the 2023 Data Centre Colocation, Hyperscale Cloud & Interconnection report by Structure Research.
Recognizing this growth, Singtel and Hitachi have identified a critical need to develop next-generation data centres that can support the increasing demand for AI capabilities while maintaining environmental sustainability. Through this collaboration, Nxera, Singtel’s regional data centre arm, will work closely with Hitachi to explore opportunities to develop smart, environmentally sustainable data centres across Japan and the Asia Pacific region. These data centres will leverage Hitachi’s expertise in energy-efficient systems, coupled with Singtel’s advanced data centre design, construction, and operational capabilities.
GPU Cloud Services and AI-Driven Enterprise Applications
In addition to data centre development, the partnership will also explore the integration of Singtel’s upcoming GPU-as-a-Service (GPUaaS) platform with Hitachi’s AI expertise. This integration aims to enhance Hitachi’s internal AI applications and workloads, providing a testing ground for the benefits of Singtel’s GPUaaS in real-world scenarios. The results of this internal testing could pave the way for the co-creation of enterprise-grade AI applications that combine Hitachi’s advanced generative AI technologies with Singtel’s GPU cloud and Paragon platform.
“Since its inception, Hitachi’s corporate philosophy has centred on addressing the challenges faced by customers and society,” said Toshiaki Tokunaga, Executive Vice President and Executive Officer at Hitachi. “As generative AI continues to drive new innovations, the issues of environmental impact due to rising electricity demand are becoming more prominent. Striking a balance between these two factors is a significant mission for Hitachi’s Social Innovation Business. We are delighted to embark on this mission through our strategic alliance with Singtel. By combining Singtel’s expertise in the development and operation of sustainable data centres with the comprehensive capabilities of the Hitachi Group, ranging from green power solutions to facility and data management, we aim to enable companies to utilise data centres in an intelligent and environmentally conscious manner; ultimately achieving continuous innovation while promoting sustainability.”
The partnership between Singtel and Hitachi represents a significant step forward in the quest for sustainable digital transformation in the Asia Pacific region. By combining their strengths in AI, cloud computing, and sustainable data centre solutions, the two companies are poised to help enterprises navigate the complexities of AI adoption while minimizing environmental impact.
As the demand for AI-driven services continues to grow, this collaboration is expected to play a crucial role in shaping the future of digital infrastructure in the region, offering enterprises the tools they need to innovate and thrive in an increasingly competitive landscape.