Singtel and Hitachi, Ltd. have agreed to collaborate on next-generation data centers and GPU Cloud in Japan and potentially the wider Asia Pacific region. Specifically, Singtel’s Digital InfraCo unit will lead the endeavor.

The strategic partnership will leverage Singtel’s extensive data center and connectivity expertise and technology platforms. Moreover, this will harness Hitachi’s differentiating capability that enables end-to-end data center integration. This includes green power solutions, cooling systems, storage infrastructure and data management.

The companies intend to sustainably enhance data center performance and capabilities. Therefore, accelerating AI adoption and digital transformation of enterprises.

Covers Hitachi’s Manufacturing Operations, Enterprise

Notably, the agreement expands on a partnership announced by the companies in June 2024^*1. This will trial and integrate Singtel’s Paragon, the all-in-one orchestration platform for 5G, edge computing, and cloud. Particulalry, with Hitachi’s AI applications for Hitachi’s manufacturing operations as well as enterprise customers. Through Singtel’s Paragon platform and Hitachi’s deep AI expertise, both companies aim to address the complexities faced by customers when deploying AI capabilities.

With the rapidly growing demand for AI and cloud services, Japan has become one of the largest and fastest growing data center markets in the Asia Pacific region. Accordingly, the market is likely to achieve a compound annual growth rate of 9.8% and reach US$5 billion by 2028^*2.

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.”

In addition, Chang said, “As we scale our digital capabilities with our partners like Hitachi, we aim to become a leader in the Asia Pacific region.”

Generative AI Drives Innovations

Singtel carved out Digital InfraCo in mid-2023. Specifically, to lead innovation and economic growth for Asia Pacific’s digital economies. Digital InfraCo’s portfolio includes Nxera, its regional data center arm, subsea cable, and satellite businesses, and Paragon platform. All are crucial to advancing AI in the region. Digital InfraCo plans to launch GPU-as-a-Service (GPUaaS) later this year to better support enterprise AI adoption.

Mr. Toshiaki Tokunaga, Executive Vice President and Executive Officer at Hitachi, said, “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 is becoming more prominent. Striking a balance between these two factors is a significant mission for Hitachi’s Social Innovation Business.”

Moreover, Tokunaga said, “(With the partnership), we aim to enable companies to utilize data centers in an intelligent and environmentally conscious manner. Ultimately, achieving continuous innovation while promoting sustainability.”

AI-driven data center expansion is a major opportunity for Hitachi’s Social Innovation business expansion and its group businesses such as Hitachi Digital Services, Hitachi Energy and others.

Notes:

*1 Press release (June 27, 2024) ”Singtel and Hitachi Digital Partner to Accelerate Industrial AI Solutions”
https://www.hitachi.com/New/cnews/month/2024/06/240628a.html

*2 Structure Research, Japan (Tokyo & Osaka) DCI Report 2023: Data Centre Colocation, Hyperscale Cloud & Interconnection

27 August 2024