Singtel and Hitachi, Ltd. have announced an expanded collaboration to drive next-generation data centres and GPU Cloud solutions in Japan and potentially across the Asia Pacific region. This strategic partnership, formalized through a Memorandum of Understanding (MOU), aims to accelerate enterprise digital transformation by enhancing AI adoption through state-of-the-art infrastructure. The initiative will be led by Singtel's Digital InfraCo unit, combining the company’s extensive expertise in data centre management and connectivity with Hitachi’s comprehensive end-to-end data centre integration capabilities.
The collaboration focuses on delivering advanced and sustainable data centre solutions, leveraging Singtel’s robust platforms and Hitachi’s specialisation in integrating green power solutions, cooling systems, storage infrastructure, and data management. By synergizing their strengths, the two companies plan to optimize data centre performance and reliability, ultimately empowering enterprises to integrate AI into their operations more seamlessly and sustainably.
This new MOU builds upon a previously announced partnership in June 2024 between Singtel and Hitachi, which was focused on integrating Singtel’s Paragon platform a comprehensive orchestration system for 5G, edge computing, and cloud with Hitachi’s AI applications. The integration aimed at optimizing AI solutions for both Hitachi’s internal operations and its enterprise clients. Through Paragon and Hitachi’s AI expertise, the companies sought to simplify the complexities of deploying AI at scale, making it more accessible and effective for businesses across different sectors.
The latest collaboration comes as Japan emerges as a key growth market for AI and cloud services. With the data centre market in the Asia Pacific region projected to grow at a compound annual growth rate (CAGR) of 9.8%, reaching US$5 billion by 2028, both Singtel and Hitachi see significant potential in this space. Japan’s growing demand for AI-driven services and cloud infrastructure presents a prime opportunity to establish next-generation data centres that cater to the region’s expanding digital economy.
Bill Chang, Chief Executive Officer of Singtel Digital InfraCo, highlighted the strategic importance of the partnership in addressing the increasing demand for AI and digital transformation solutions. "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. Our strategic partnership with Hitachi, a leader in digital systems and services, opens up new opportunities in the expanding Japanese market. As we scale our digital capabilities with partners like Hitachi, we aim to become a leader in the Asia Pacific region”, said Chang.
Singtel’s Digital InfraCo, established in mid-2023, serves as a catalyst for innovation and economic growth within Asia Pacific’s digital economies. The unit oversees a portfolio that includes Nxera, Singtel’s regional data centre arm, alongside its subsea cable and satellite businesses, and the Paragon platform. These assets are integral to advancing AI and digital infrastructure across the region. Later this year, Digital InfraCo plans to launch GPU-as-a-Service (GPUaaS), aimed at supporting enterprise AI adoption more effectively. The GPUaaS platform is expected to enhance high-performance computing capabilities, enabling businesses to manage AI workloads efficiently.
Toshiaki Tokunaga, Executive Vice President and Executive Officer at Hitachi, expressed the company’s commitment to addressing the challenges posed by the rapid expansion of generative AI and cloud services. “Since its inception, Hitachi’s corporate philosophy has centered on addressing the challenges faced by customers and society. 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 from green power solutions to facility and data management we aim to enable companies to utilize data centres in an intelligent and environmentally conscious manner, ultimately achieving continuous innovation while promoting sustainability”.
The partnership’s key focus areas include exploring next-generation data centre opportunities across Japan and the wider Asia Pacific region, particularly in response to the growing AI demand. Nxera and Hitachi will work together to develop smart and environmentally sustainable data centres. The initiative aims to draw on Nxera’s expertise in data centre design, construction, and operation, while integrating Hitachi’s advanced solutions in energy, infrastructure, and IT systems management.
Nxera is currently building a platform of sustainable, hyper-connected AI-ready data centres in the Asia Pacific region, with a total capacity of more than 200MW, in addition to the 62MW of existing capacity in Singapore. The platform is expected to play a pivotal role in supporting the digital infrastructure needs of enterprises as they increasingly adopt AI technologies.
Additionally, Hitachi will explore leveraging Singtel’s GPUaaS platform for its internal AI workloads. This will enable the company to test and verify the benefits of Singtel’s cloud-based solutions in enhancing its AI-driven technologies. Based on the results, the two companies may co-create enterprise-grade applications that combine Hitachi’s AI expertise with Singtel’s GPU cloud and Paragon platform. The goal is to deliver more power-efficient AI methodologies that can reduce development and deployment timelines while aligning with sustainability objectives.
As AI-driven data centre expansion continues to present opportunities for Hitachi’s Social Innovation business, the collaboration is expected to drive significant growth across the company’s various group businesses. By integrating information technology, operational technology, and products, Hitachi aims to offer comprehensive solutions that meet the evolving needs of the digital economy.