Singtel and Hitachi, Ltd. signed a Memorandum of Understanding (MOU) to collaborate on next-generation data centers and GPU Cloud in Japan and potentially the wider Asia Pacific region under the lead of Singtel's Digital InfraCo unit. The strategic partnership will combine Singtel's extensive data center and connectivity expertise and technology platforms with Hitachi's differentiating capability that enables end-to-end data center integration including green power solutions, cooling systems, storage infrastructure and data management. Together, the companies intend to sustainably enhance data center performance and capabilities, thereby accelerating AI adoption and digital transformation of enterprises.

Notably, the agreement expands on a partnership announced by the companies in June 2024 to trial and integrate Singtel's Paragon, the all-in-one orchestration platform for 5G, edge computing and cloud, 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.

The market is expected to achieve a compound annual growth rate of 9.8% and reach USD 5 billion by 2028. Structure Research, Japan (Tokyo & Osaka) DCI Report 2023: Data Centre Colocation, Hyperscale Cloud & Interconnection.