Singtel and Hitachi have signed a Memorandum of Understanding (MoU) to collaborate on the development of next-generation data centres and GPU Cloud in Japan, with potential expansion across the Asia Pacific region.
This strategic partnership, led by Singtel’s Digital InfraCo unit, will merge Singtel’s extensive expertise in data centres and connectivity with Hitachi’s unique capabilities in end-to-end data centre integration, including green power solutions, cooling systems, storage infrastructure, and data management. Together, the companies aim to enhance data centre performance and capabilities in a sustainable manner, thereby accelerating the adoption of AI and driving digital transformation for enterprises.
This agreement builds upon a partnership announced in June 2024, in which the two companies began trialling the integration of Singtel’s Paragon platform—a comprehensive orchestration solution for 5G, Edge computing, and Cloud—with Hitachi’s AI applications, designed for both Hitachi’s manufacturing operations and enterprise customers. By leveraging Singtel’s Paragon platform and Hitachi’s AI expertise, the partnership seeks to address the complexities associated with deploying AI capabilities for customers.
Japan, one of the largest and fastest-growing data centre markets in the Asia Pacific region, has seen a surge in demand for AI and Cloud services. The market is expected to grow at a compound annual growth rate of 9.8%, reaching US$5 billion by 2028.
Bill Chang, CEO of Singtel’s Digital InfraCo, said: “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. 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.”
Singtel established Digital InfraCo in mid-2023 to serve as a catalyst for innovation and economic growth within Asia Pacific’s digital economies. Digital InfraCo’s portfolio includes Nxera, its regional data centre arm, as well as its subsea cable, satellite businesses, and Paragon platform—all of which are instrumental in advancing AI across the region. Later this year, Digital InfraCo plans to launch GPU-as-a-Service (GPUaaS) to further support enterprise AI adoption.
“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 is 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 expansion of AI-driven data centres represents a significant opportunity for Hitachi’s Social Innovation business and its related group companies, such as Hitachi Digital Services and Hitachi Energy. This expansion requires successful integration across Hitachi’s areas of expertise, including information technology, operational technology, and product development.
Key focus areas of the MoU include:
Exploring next-generation data centre collaboration in Japan and Asia Pacific to meet AI demand: Nxera and Hitachi will explore opportunities to develop data centres throughout Japan and the Asia Pacific region. With the increasing momentum in Cloud and AI services, there is a need for smart, environmentally sustainable data centres that are efficiently managed. This initiative will draw on Nxera’s expertise in data centre design, construction, and operation, combined with Hitachi’s proficiency in data-centre-focused equipment, next-generation energy solutions, and advanced IT systems management.
Nxera is currently developing a platform of sustainable, hyper-connected AI-ready data centres in the region, with a total planned capacity of over 200MW, in addition to the 62MW of existing capacity in Singapore.
Combining Singtel’s GPU platform with Hitachi’s AI expertise to develop enterprise applications: Hitachi will explore the use of Singtel’s GPUaaS for its internal AI applications and workloads. This initiative would allow Hitachi to validate the complementary benefits of Singtel’s platform, enhancing Hitachi’s high-performance machine learning, generative AI, and other digital solutions. Additionally, it presents an opportunity for both companies to develop more power-efficient methodologies that support enterprises’ sustainability goals.
Based on the outcomes of Hitachi’s internal GPUaaS validation, the companies may also explore the co-creation of enterprise-grade applications, combining Hitachi’s expertise, including its generative AI technologies, with Singtel’s GPU cloud and Paragon platform. The goal is to reduce development and deployment times for customers, while minimising the management overhead associated with AI applications.
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