Singapore is attracting billions of dollars in artificial intelligence (AI) investments from global companies, as the country’s long-term efforts to build a strong AI ecosystem begin to pay off.
In 2025, major multinationals including mining giant BHP, cloud computing firm Oracle, professional services company PwC, and Southeast Asian super-app Grab have all announced plans to invest heavily in AI hubs in Singapore. OpenAI, the creator of ChatGPT, also has a presence in the city-state.
Singapore has been building its AI and technology capabilities for over a decade, starting with the Smart Nation initiative in 2014 and introducing a dedicated national AI strategy in 2019, which was updated last year. In February 2024, then-Deputy Prime Minister Lawrence Wong announced that Singapore would invest over S\$1 billion (\$778 million) in AI infrastructure, talent development, and industry partnerships over the next five years.
“Singapore has developed an ecosystem for AI over the past decade,” said Tim Lin, a Singapore-based partner at The Digital Infrastructure Collective (Asia). He added that the country’s “forward-leaning approach to adopting technology and partnering with industry leaders to co-create solutions” makes it an attractive destination for businesses.
In May 2025, BHP revealed plans to open its first industry AI hub in Singapore. PwC also committed \$4 million over three years to establish an ‘AI factory’ in the city. These announcements followed others in March, including Heineken launching its first global lab for generative AI development and Salesforce pledging to invest \$1 billion in Singapore over the next five years.
Marc Benioff, CEO of Salesforce, described Singapore as being “at the forefront” of a global transformation where autonomous AI agents will reshape how businesses operate. Salesforce plans to promote its Agentforce platform, which enables organisations to build and deploy customised autonomous AI agents.
John Lovelock, chief forecaster at research firm Gartner, noted that multinational companies are investing in locations where governments are committed to supporting AI development, such as Singapore, the UAE, and the US. He believes more businesses will set up AI operations in Southeast Asia in the coming years.
A key factor driving AI investments in Singapore is access to computing power. The country has a high concentration of data centres, and neighbouring countries like Malaysia and Indonesia also provide additional data processing capacity. According to Mr Lovelock, the global shortage of “AI-optimised servers” is leading companies to establish operations in places like Singapore where their needs are more likely to be met.
However, rising demand is putting pressure on Singapore’s resources, particularly land and power. Sherwin Loh, Singapore country director at consultancy Vriens & Partners, warned that tightening US export restrictions on advanced chips may also make it harder for companies to source the hardware needed for AI operations.
“Singapore’s historically advantageous position as a welcoming hub for both US and Chinese AI companies is increasingly precarious amid escalating geopolitical tensions and tech bifurcation,” he said, adding that this could force Singapore to take sides and limit the diversity of AI investments.
While Singapore continues to expand its AI talent pool through training and recruitment, many businesses say there is still a shortage of skilled workers. A recent survey by Milieu Insight for HR platform Deel found that nearly half (47%) of 350 Singapore-based business leaders believe the local talent pool is not enough to meet demand.
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