Will the next DC-CFA finally be unveiled next week?

The rumour mill is working overtime

Will the next DC-CFA finally be unveiled next week?

The rumour mill is working overtime. Will the DC-CFA 2 be finally announced next Thursday? I think we are looking at it the wrong way.

Meeting date set

As I commented in a previous post, the data centre industry is among the most secretive around... and the leakiest.

There's no doubt been quite a few WhatsApp messages circulating about a meeting at IMDA next week. The speculation: It's the much-anticipated DC-CFA2.

So is it?

Well, I honestly don't know, as decision makers are holding their cards really close to their chest. And IMDA does have a track record of deliberations with industry stakeholders before any substantive announcements.

If I had to guess, I'd say probably not.

For what it's worth, I also think we are looking at it the wrong way.

Why the fuss over DC-CFA 2?

First, what is the DC-CFA, or Data Centre - Call for Application? The pilot round was launched in 2022 and offered a way for operators to submit proposals to potentially secure capacity for new data centres.

As a mature data centre hub, operators are generally keen to secure additional capacity here. Hence the keen interest in the next DC-CFA, or DC-CFA 2 as it's commonly dubbed.

Here's the thing: I don't expect DC-CFA 2 to be a repeat of the pilot DC-CFA.

After all, a lot has happened since 2022:

  • ChatGPT took the world by storm.
  • Continued improvements in AI since.
  • Green Data Centre Roadmap with 300MW.
  • Green Mark for Data Centre (2024) released.

Also, the fact that progress of capacity awarded during the pilot DC-CFA has been... really slow, will be a consideration in official deliberations.

In my view, thinking about DC-CFA 2 as a revised version of DC-CFA will probably bring us to all the wrong conclusions.

What I think

Thinking back to all my interactions with IMDA, EDB, and attending various briefings, here's what I'll say of Singapore's likely path forward for data centres.

  • All clues are already in the Green Data Centre Roadmap.
  • DC-CFA is but one avenue of allocating DC capacity.
  • Singapore isn't keen to be an AI training hub.
  • It cares about strategic opportunities.

Finally, think bigger (beyond individual DCs; walls of a DC), and think smaller (older data centres).

What do you think?