Singtel and Hitachi Expand Collaboration to Next-Generation Data Centers and GPU Cloud to Accelerate Enterprise Digital Transformation by AI Adoption

SINGAPORE & TOKYO–(Business)–Singtel and Hitachi Limited (TSE: 6501) have signed a Memorandum of Understanding (MoU) to collaborate on next-generation data centers and GPU cloud in Japan and potentially the broader Asia-Pacific region under Singtel’s Digital InfraCo unit. The strategic partnership will combine Singtel’s extensive expertise in data centers, connectivity and technology platforms with Hitachi’s unique capability to enable end-to-end data center integration including green energy solutions, cooling systems, storage infrastructure and data management. Together, the companies intend to sustainably enhance data center performance and capabilities, thereby accelerating the adoption of artificial intelligence and digital transformation for enterprises.

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Notably, the agreement expands the partnership announced by the two companies in June 20241 to pilot and integrate Singtel’s Paragon, a comprehensive orchestration platform for 5G, edge computing and cloud, with Hitachi’s AI applications for Hitachi’s manufacturing operations as well as enterprise customers. With Singtel’s Paragon platform and Hitachi’s deep AI expertise, both companies aim to address the complexities customers face when deploying AI capabilities.

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

With 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 grow at a CAGR of 9.8% and reach USD 5 billion by 20282.

2 Structure Research, Japan (Tokyo & Osaka) DCI Report 2023: Data Center Sharing, Hyperscale Cloud, and Interconnection

“Our strategic partnership with Hitachi, a leader in digital systems and services, opens up new opportunities in a strategically important and expanding Japanese market,” said Mr. Bill Chang, CEO of Singtel’s Digital InfraCo. “Building a strong ecosystem of partners has always been a priority at Singtel to better serve our customers and expand our global reach. We look forward to bringing our collective expertise, assets and digital solutions to help more businesses innovate and transform their businesses and operations through cloud and AI. By expanding our digital capabilities with partners like Hitachi, we aim to become a leader in the Asia Pacific region.”

Singtel established Digital InfraCo in mid-2023 to serve as a catalyst for innovation and economic growth for digital economies in the Asia Pacific region. Digital InfraCo’s portfolio includes Nxera, its regional data centre arm, submarine cable and satellite businesses, and the Paragon platform, all of which are essential to the development of AI in the region. Digital InfraCo plans to launch GPU-as-a-Service (GPUAaS) later this year to better support the adoption of AI in enterprises.

“Since its inception, Hitachi’s corporate philosophy has focused on addressing the challenges faced by customers and society. As generative AI continues to drive new innovations, environmental impact issues due to rising electricity demand have become more prominent. Finding a balance between these two factors is an important mission for Hitachi’s social innovation business. We are pleased to embark on this mission through our strategic alliance with Singtel. By combining Singtel’s expertise in developing and operating sustainable data centres with Hitachi’s comprehensive capabilities, from green energy solutions to facilities and data management, we aim to enable businesses to utilize data centres in a smart and environmentally conscious way; and ultimately achieve continuous innovation while enhancing sustainability,” said Mr. Toshiaki Tokunaga, Executive Vice President and Chief Executive Officer, Hitachi.

Expanding AI-powered data centers represents a significant opportunity to expand Hitachi’s social innovation business and its group businesses such as Hitachi Digital Services, Hitachi Energy, and others. Expansion requires the successful integration of all the areas in which Hitachi uniquely excels: IT, OT, and products.

The main areas covered by the MoU are:

Explore Next-Generation Data Center Collaboration in Japan and APAC to Meet AI Demand: Nxera and Hitachi will explore data center development opportunities across Japan and the rest of the Asia-Pacific region. As cloud computing and AI continue to grow in momentum, it is important to operate smart and environmentally sustainable data centers through highly efficient and high-quality data center management. Such an initiative will leverage Nxera’s expertise in data center design, construction and operation, along with Hitachi’s expertise in manufacturing and delivering custom data center equipment, next-generation power solutions and advanced IT systems management that ensure stable operations within data center environments.

Nxera is developing a sustainable, AI-connected data center platform in the region with a total capacity of over 200MW in addition to the existing 62MW capacity in Singapore.

Integrating Singtel’s GPU Platform with Hitachi’s AI Expertise to Develop Enterprise Applications: Hitachi will explore the use of Singtel’s GPUaaS service for its internal AI applications and workloads. This effort will allow Hitachi to validate the complementary benefits of Singtel-based AI that can leverage Hitachi’s high-performance machine learning, generative AI, and other digital technologies and solutions. This will provide an opportunity for both companies to identify more energy-efficient approaches that can advance any organization’s sustainability goals.

Based on Hitachi’s internal GPUaaS validation results, companies may also explore building enterprise-grade applications that combine Hitachi’s expertise, including its generative AI technologies and platform, with Singtel’s GPU Cloud and Paragon platform. The goal is to further reduce development and deployment times for customers as well as management and deployment costs for AI applications.

About Singtel

Singtel is a leading telecom technology group in Asia, operating next-generation telecom services, digital infrastructure and digital businesses including regional data centre company Nxera and regional IT services company NCS. The group has a presence in Asia, Australia and Africa, reaching over 780 million mobile customers in 21 countries.

For consumers, Singtel offers a full and integrated suite of services, including mobile, broadband and TV. For enterprises, Singtel offers a full suite of workforce mobility solutions, data hosting, cloud, network infrastructure, analytics and cybersecurity capabilities.

Singtel is committed to continuous innovation, harnessing technology to create new and exciting customer experiences, supporting enterprises in digital transformation and shaping a more sustainable digital future.

For more information, visit www.singtel.com.

About Hitachi Co., Ltd.

Hitachi leads the business of social innovation, creating a sustainable society through the use of data and technology. We solve customer and societal challenges with Lumada solutions that leverage information technology, operating technology and products. Hitachi operates under the business structure of Digital Systems and Services – supporting the digital transformation of our customers; Green Energy and Mobility – contributing to a carbon-free society through power and railway systems; and Connected Industries – connecting products through digital technology to provide solutions across industries. Driven by digital, green and innovation, we aim to grow through co-creation with our customers. The company’s consolidated revenue for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1 billion yen, with 696 consolidated subsidiaries and approximately 320,000 employees worldwide. For more information about Hitachi, please visit the company’s website at https://www.hitachi.com.

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Media:

HItachi
Mika Oh
Corporate Communications, Digital Systems and Services, Hitachi Co., Ltd.
koho@itg.hitachi.co.jp

Heather Ailara
Hitachi Digital (North America & Europe)
Heather@211comms.com

Source: Hitachi Co., Ltd.