The strategic partnership will combine Singtel’s extensive data centre and connectivity expertise and technology platforms with Hitachi’s differentiating capability that enables end-to-end data centre integration including green power solutions, cooling systems, storage infrastructure and data management.
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Together, the companies aim to sustainably boost data centre performance and capabilities, accelerating AI adoption and digital transformation of enterprises.
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 its manufacturing operations and enterprise customers.
Through the platform, and Hitachi’s 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 centre markets in the Asia Pacific region.
The market is expected to achieve a compound annual growth rate (CAGR) of 9.8% and reach US$5 billion by 2028.
Bill Chang, CEO of Singtel 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 carved out Digital InfraCo in mid-2023 to serve as a catalyst for innovation and economic growth for Asia Pacific’s digital economies.
Digital InfraCo’s portfolio includes Nxera, its regional data centre arm, subsea cable and satellite businesses and the Paragon Platform which are all crucial to advancing AI in the region, the firm said in a release.
Toshiaki Tokunaga, EVP and executive officer at Hitachi said: “As generative AI continues to drive 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.”
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