On August 26, Singtel announced that it had signed a memorandum of understanding with Hitachi of Japan. The two parties will cooperate in the development of next-generation data centers and GPU clouds in Japan and other parts of Asia Pacific under the leadership of the Digital InfraCo department to solve the difficulties encountered by customers in the deployment of artificial intelligence.

With the rapid growth of demand for artificial intelligence and cloud services, Japan has become one of the largest and fastest-growing data center markets in the Asia-Pacific region. It is expected that by 2028, the market size will reach US$5 billion, with a compound annual growth rate of 9.8%.

Last year, the Digital InfraCo department of Singapore Telecommunications was officially established. Its business includes its regional data center department Nxera, submarine cable and satellite business and Paragon platform, aiming to become a catalyst for innovation and growth in the digital economy in Asia Pacific.

In June, the two companies had formed a partnership to "experiment and integrate Singapore Telecommunications Paragon (a platform integrating 5G, edge computing and cloud computing) with Hitachi's artificial intelligence applications". This cooperation is further expanded on this basis to jointly improve the performance and capabilities of data centers and accelerate the digital transformation of enterprises by increasing the adoption of artificial intelligence technology.

The collaboration between Singtel and Hitachi will combine the differentiated capabilities of both parties, including green power solutions, cooling systems, storage infrastructure and data management, to achieve end-to-end data center integration. Specifically, key areas will include:

• Next-generation data center development: Nxera, Singtel's regional data center unit, and Hitachi will jointly explore opportunities to develop AI data centers across Japan, aiming to meet the growing demand for high-performance computing infrastructure and support the proliferation of AI applications. The initiative will leverage Nxera's expertise in data center design, construction and operation, and Hitachi's expertise in producing and delivering data center-specific equipment, next-generation energy solutions and advanced IT system management to ensure stable operations in data center environments.

Notably, Nxera is developing a sustainable, hyperconnected AI data center platform in the region with a total capacity of more than 200MW, in addition to the existing 62MW capacity in Singapore.

• GPU Cloud Integration: The Digital InfraCo division plans to launch GPU as a Service (GPUaaS) later this year, and Hitachi will consider applying it to internal AI applications and workloads, thereby leveraging advanced GPU technology to enhance Hitachi's high-performance machine learning, generative AI and other digital technologies and solutions, and to advance the company's sustainable development goals in a more energy-efficient way. Based on Hitachi's internal verification results, the two companies may also further explore the joint creation of enterprise-level applications that combine both parties' technologies and platforms.

Bill Chang, CEO of Singtel Digital InfraCo, said the collaboration with Hitachi "opens up new opportunities in the strategically important and expanding Japanese market".

He added: "We look forward to leveraging our expertise, digital assets and solutions to help more enterprises innovate and transform their businesses and operations through cloud and AI."