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Official data released by the National Bureau of Statistics showed value-added industrial output rose 6.3 per cent year on year during January and February combined. The figure marked an acceleration from the 5.2 per cent growth recorded in December and exceeded forecasts by economists who had anticipated a more modest rise of around five per cent.
Authorities combine the first two months of the year when reporting major economic indicators to smooth distortions created by the Lunar New Year holiday, which shifts between January and February and can disrupt production schedules and consumer spending patterns.
The latest figures indicate that industrial activity remains one of the more resilient pillars of China’s economic performance. Manufacturing, mining and utilities production all contributed to the increase, with higher-value sectors linked to technology and advanced equipment manufacturing continuing to expand.
Stronger factory output came alongside moderate improvement in other key indicators. Retail sales, a broad measure of consumption, climbed 2.8 per cent during the same period, signalling some recovery in household spending after a subdued end to the previous year. Fixed-asset investment, which tracks spending on infrastructure, property and equipment, rose 1.8 per cent after contracting during 2025.
Analysts view the combination of rising industrial production and steady investment as evidence that state-backed infrastructure projects and export-oriented manufacturing are helping stabilise growth, even as other sectors continue to face pressure.
Manufacturing linked to high-technology and green industries has been a central driver of output gains. Production of computers, communications equipment and advanced machinery has expanded more rapidly than traditional heavy industries, reflecting Beijing’s push to upgrade the country’s industrial base and strengthen technological self-reliance. Data on industrial structure show that more than thirty of the country’s forty-one major manufacturing categories recorded growth during the past year, underlining the breadth of activity across sectors.
Exports have also provided support. Overseas shipments from China surged at the start of the year, led by electronics, semiconductors and equipment associated with artificial intelligence infrastructure. Robust global demand for solar panels, electric vehicles and lithium batteries has further reinforced factory activity, with these sectors often described as part of China’s emerging “new three” export engines.
Despite the stronger industrial figures, economists caution that the broader economic outlook remains uneven. Domestic consumption has not fully regained momentum, and households continue to show caution in discretionary spending. Retail sales growth, although improving, still lags behind pre-pandemic levels, highlighting lingering uncertainty among consumers.
A prolonged downturn in the property sector remains one of the most significant drags on economic confidence. Investment in real estate development has declined sharply over the past several years, and housing sales have contracted as developers grapple with high debt levels and weak buyer demand. The downturn has had ripple effects across construction, steel, cement and household goods industries, sectors traditionally linked to housing activity.
Labour market conditions also present a mixed picture. Urban unemployment rates have edged higher, with the jobless rate reaching slightly above five per cent early in the year. Rising employment pressure, particularly among younger workers and graduates, has become a focus of policy discussions as authorities seek to sustain economic stability.
Manufacturing sentiment indicators underscore these challenges. Official purchasing managers’ surveys have slipped below the expansion threshold of 50, suggesting some factories are experiencing slower order growth and cautious business expectations. Analysts note that while export-oriented companies continue to benefit from global demand, firms dependent on domestic consumption face more subdued conditions.
Beijing has set a national economic growth target of around 4.5 to 5 per cent for 2026, the lowest range in decades and a signal that policymakers are preparing for a more moderate expansion phase as structural adjustments reshape the economy. The leadership has repeatedly emphasised the need to strengthen domestic demand while maintaining technological advancement and industrial upgrading.
Infrastructure spending remains a key policy lever. Local governments have accelerated projects in transportation networks, energy systems and digital infrastructure, helping sustain industrial demand for materials and equipment. Investment in strategic industries, including renewable energy and advanced manufacturing, continues to receive policy support.
Global developments also weigh on the outlook. Geopolitical tensions and fluctuations in energy prices could affect trade flows and production costs, while shifting trade policies among major economies present another layer of uncertainty for exporters.
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Dubai-based technology firm Solstice Data has signed a memorandum of understanding with the Kerala government to invest ₹52,600 crore in a large-scale data infrastructure project at the KINFRA Industrial Park in Mattannur, marking one of the biggest technology investments proposed for the state’s digital economy. The agreement envisions the development of advanced artificial intelligence-driven high-performance computing data centres on approximately 100 acres of land in Kannur district, a move officials say could reshape the region’s industrial profile.
The MoU was exchanged in Thiruvananthapuram between Raj Babu Thulaseedharan, Solstice Data’s country head for India, and Santhosh Koshy Thomas, managing director of Kerala Industrial Infrastructure Development Corporation, commonly known as KINFRA. The signing ceremony took place in the presence of Industries Minister P Rajeev and Director of Industries P Vishnuraj, signalling strong administrative backing for the project.
Solstice Data, headquartered in Dubai, specialises in designing and operating high-performance computing facilities that support artificial intelligence applications, cloud services and large-scale data processing. The company has overseen more than sixty data-centre projects internationally, including facilities in North America. The planned Kerala campus is expected to incorporate similar advanced infrastructure, supporting large computing workloads used by artificial intelligence developers, research institutions and global technology companies.
Officials involved in the negotiations describe the proposed facility as a strategic attempt to position Kerala within the expanding global data-centre ecosystem. The investment is scheduled to be implemented over a five-to-seven-year period, with phased development of computing infrastructure and supporting utilities. Such projects typically require heavy investments in power systems, cooling technology, fibre-optic connectivity and advanced cybersecurity frameworks, all of which are considered essential to attract international technology firms that rely on reliable data-processing capacity.
Mattannur’s KINFRA Industrial Park was selected as the project site after infrastructure upgrades created additional industrial land within the complex. The park covers about 175 acres, with roughly 123 acres designated for industrial use after internal roads, power supply and other facilities were developed. Officials said the Solstice Data project will occupy the remaining 100 acres currently available for new enterprises within the park, effectively completing the industrial allocation of the site.
Kerala’s industry department has framed the project as part of a broader push to attract technology-driven investments beyond the state’s established IT corridors. While cities such as Kochi and Thiruvananthapuram host major software parks and technology campuses, northern districts have been seeking large industrial anchors to stimulate employment and infrastructure development. Officials believe a data-centre cluster could generate both direct and indirect jobs, ranging from engineering and maintenance roles to specialised positions in artificial intelligence research and cloud-computing operations.
Industries Minister P Rajeev said the planned facility is expected to open significant digital opportunities for the state’s technology ecosystem. According to government officials, the project will be developed in collaboration with local partners, potentially creating links with educational institutions, startups and software companies working in artificial intelligence and data analytics. The state has promoted digital innovation as a key pillar of its industrial strategy, aiming to expand sectors such as fintech, health-tech and data science.
Data-centre investments have gathered momentum globally as demand for computing power rises with the growth of artificial intelligence models, streaming services and cloud-based applications. Major technology companies have been building hyperscale facilities capable of handling vast quantities of data, often requiring reliable electricity supply and extensive fibre-optic connectivity. Industry analysts say regions that provide stable power networks, regulatory clarity and strong connectivity stand to attract significant investments from technology infrastructure firms.
Kerala has gradually positioned itself as a destination for knowledge-based industries through investments in IT parks, research institutions and digital-skills programmes. Earlier technology initiatives in the state have involved collaborations with global companies and overseas investors. Observers see the Solstice Data project as another example of cross-border partnerships shaping technology infrastructure, particularly with firms based in the Gulf that maintain commercial ties with southern states.
Local authorities in Kannur district view the project as a potential catalyst for broader economic activity around Mattannur, an area already connected by road networks and the nearby Kannur International Airport. Industrial planners say large technology campuses often stimulate the creation of ancillary industries including power equipment suppliers, cooling system manufacturers and digital-services firms.
Solstice Data’s decision to establish an artificial-intelligence-focused data-centre campus also reflects the intensifying competition among regions seeking to host digital infrastructure. Governments across Asia have introduced policies aimed at attracting such projects through land allocation, tax incentives and investments in high-capacity electricity grids.
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SINGAPORE – Media OutReach Newswire – 12 March 2026 – Bridge Data Centres (BDC), a Singapore-headquartered digital infrastructure platform backed by Bain Capital, has announced ambitious plans to invest S$3-5 billion in Singapore to advance next-generation digital infrastructure and strengthen the country’s position as a leading AI and cloud hub in Asia Pacific.
BDC had announced its new strategic brand identity in early 2026 that reflects the Company’s position of being a leading hyperscale and AI-infrastructure builder with a growing network of mega-campus developments in Asia Pacific. With close to a decade of experience developing high quality data centres, BDC’s new brand identity reflects BDC’s reputation as platform built on disciplined execution, certainty of delivery, and the ability to scale with customers.
As AI and high-density workloads accelerate across Asia Pacific, customers are looking for partners who can offer world-class capabilities and local agility, provide bespoke solutions at scale, and deliver and operate with a proven track record.
With Singapore serving as its global headquarters, BDC is uniquely positioned to support hyperscale customers and global technology companies seeking high-performance, sustainable and scalable data centre platforms across Asia Pacific, while enabling global technology companies to establish and expand their presence in Singapore as they develop AI and digital capabilities in the region.
Over the past decade, BDC has established itself as one of Asia Pacific’s leading digital infrastructure developers and operators. The Company currently operates and develops hyperscale campuses across Malaysia, Thailand and India.
Building on strong relationships with global hyperscale customers and ecosystem partners, BDC is on track to expand its regional capacity to approximately 2 GW by 2030.
By deepening its investments in Singapore, BDC aims to support customers seeking world-class digital infrastructure expertise, strong technology partnerships and integrated energy solutions that enable the sustainable growth of AI workloads.
First-mover advantage
BDC is among the first data centre developers to foray into Malaysia, where the Company has several large-scale data centre campuses – both operational and under development.
BDC’s flagship MY06 campus is the Company’s first project in Johor, as well as the state’s first hyperscale data centre development. In addition, BDC is the first data centre developer in Southeast Asia to adopt a build-to-suit (BTS) model for hyperscale data centre construction. BDC was also among the first hyperscale operators in the region to deploy advanced liquid cooling technologies at scale, including cold plate liquid cooling, to support high-density and AI-driven workloads. BDC’s suite of sustainability initiatives at MY06 enabled the facility to achieve an annualised Power Usage Effectiveness (PUE) of below 1.2.
BDC is also the first in Southeast Asia to incorporate Prefabricated, Prefinished Volumetric Construction (PPVC) construction, an innovative method that assembles large building sections off site. This enabled BDC to complete MY06 within eight months, which is 40 per cent faster than traditional methods, while reducing on-site dust, waste and noise. This strategy is one of BDC’s key competitive advantages to support the growing needs of hyperscale customers in the region, including Singapore, who need to rapidly scale to meet increasing demand for more capacity to power AI-workloads.
BDC has built Malaysia’s first large-scale Water Treatment Plant (WTP) to treat effluent and convert it into high grade effluent water to cool its upcoming 400MW campus in Ulu Tiram, Johor. The WTP applies advanced Membrane Bioreactor (MBR) and Reverse Osmosis (RO) technologies to deliver superior water recovery and quality. Since commencing operations in 2025, the WTP has been significantly reducing reliance on potable water. It further strengthens the long-term resilience of BDC’s operations and supports Johor’s broader environmental agenda.
The WTP has also attracted interest from regional public agencies. In 2025, BDC hosted a technical visit by representatives from PUB, Singapore’s National Water Agency, who were presented with an overview of the plant’s design and its use of advanced membrane technologies for sustainable water reuse in data centre operations.
BDC’s MY-06 Campus (Building 1) has achieved Singapore’s BCA Green Mark Platinum Award granted under the BCA-IMDA Green Mark International for Data Centres 2024 (GMDC: 2024) framework. The BCA Green Mark Award recognises developers, building owners and individuals who have made outstanding achievements in environmental sustainability in the built environment. BDC is the first data centre operator to achieve this recognition for a facility based outside of Singapore. Beyond project certification, BDC has also signed a Memorandum of Understanding with BCA International (BCAI) to support the international adoption of Singapore’s Green Mark standards in global data centre developments. Through this partnership, BDC will promote Singapore’s sustainable building standards globally while reinforcing the country’s position as a leading AI and green digital infrastructure hub in the region.
These capabilities are aligned with Singapore’s Green Data Centre (DC) Roadmap, which emphasises energy efficiency, sustainable resource use and the integration of green energy to support the growth of digital infrastructure. BDC’s experience in delivering high-efficiency campuses positions it well to contribute to these objectives through practical, deployable solutions.
Pioneering energy solutions
As AI workloads drive the rapid expansion of digital infrastructure, energy resilience, data security and sustainability are becoming increasingly important. BDC is advancing a range of initiatives to explore alternative energy pathways and strengthen long-term power strategies.
A key collaboration is with Concord New Energy (CNE), where the partners are jointly developing Singapore’s first floating hydrogen power generation solution tailored for next-generation AI digital infrastructure, marking a significant milestone in advancing low-carbon energy pathways for the data centre sector.
BDC and CNE will also collaborate with Nanyang Technological University (NTU) to support the development of Singapore’s hydrogen ecosystem, accelerating research, engineering and the deployment of scalable clean energy technologies for digital infrastructure applications.
In addition, BDC is working with Singapore’s Agency for Science, Technology and Research Institute of High Performance Computing (A*STAR IHPC) and HY to evaluate the potential of nuclear energy as a long-term clean power source for data centres.
BDC’s alliance with A*STAR IHPC and HY will leverage advanced modelling and engineering expertise to explore innovative low-carbon energy pathways that will support Singapore’s sustainable digital growth while reinforcing the nation’s position as a trusted global technology hub.
BDC has also established partnerships with global leaders in energy and energy storage technologies, including CATL, EcoCeres, SK Innovation. Through these collaborations, the partners will jointly explore the establishment of innovation and research platforms to advance the development and pilot deployment of clean energy solutions such as hydrogen and biomass energy, as well as next-generation energy storage technologies designed for tropical climates. These initiatives aim to enhance thermal management, improve safety performance and increase the power density of data centre energy storage systems.
These collaborations and pilot initiatives will also contribute to talent development and workforce capability building in Singapore’s digital infrastructure and energy sectors. Through joint research programmes, technology pilots and knowledge exchange with universities, research institutions and industry partners, BDC aims to support the development of specialised expertise in areas such as advanced energy systems, sustainable data centre design, and next-generation cooling and energy storage technologies.
The initiatives are also expected to create high-value job opportunities in Singapore, spanning engineering, energy systems research, digital infrastructure operations and advanced technology development. By nurturing local talent and strengthening cross-disciplinary capabilities, these efforts will help build a robust talent pipeline to support Singapore’s growing AI and digital infrastructure ecosystem.
These partnerships represent a strategic step in BDC’s long-term roadmap to diversify power sourcing pathways, enhance energy security, and future-proof its Singapore data centre portfolio amid evolving grid constraints and decarbonisation dynamics. They also reinforce Singapore’s position as a regional hub for AI-ready digital infrastructure, while supporting the nation’s broader ambitions in sustainable energy innovation and green economic growth. Furthermore, these advancements accelerate Singapore’s ambition to achieve its net zero emissions goal by 2050.
Advancing technology and ecosystem growth
BDC is also pushing the envelope in innovative and sustainable cooling solutions through collaborations with ecosystem technology partners such as Vertiv, Terahop and Teracule, which are subsidiaries of Zhongji Innolight, as well as Delta Electronics and Supermicro.
Many of these partners are established leaders in data centre cooling, power systems and high-performance computing infrastructure, and are active participants in the broader AI infrastructure ecosystem, working closely with leading chipmakers to support next-generation compute environments.
Through its collaboration with Teracule and Terahop, the subsidiaries of Zhongji Innolight, BDC is exploring opportunities to jointly develop next-generation liquid cooling modules and high-performance optical connectivity solutions tailored for AI data centre environments. By combining Innolight’s expertise in optical modules and high-speed interconnect technologies with BDC’s experience in hyperscale data centre design and operations, the partners aim to advance integrated solutions that enhance thermal efficiency, data transmission performance and system reliability for high-density AI workloads.
The collaboration will also explore the establishment of joint research and development initiatives in Singapore, bringing together industry, academia and research institutions to support innovation in AI infrastructure technologies. Through this industry–academia-research collaboration model, the partners aim to accelerate the development and commercialisation of advanced cooling and connectivity technologies while contributing to Singapore’s broader push to strengthen research, talent development and innovation within the digital infrastructure ecosystem.
Together, these alliances focus on the development of advanced liquid cooling architectures, high-density GPU cooling solutions, and energy-optimised HVAC systems designed to support increasingly compute-intensive workloads. These technologies are critical in enabling the efficient operation of AI infrastructure, particularly as rack densities and thermal loads continue to rise in next-generation data centre environments.
Driving regional connectivity
As a Singapore-headquartered digital infrastructure platform, BDC continues to strengthen Singapore’s position as a regional hub for digital infrastructure and AI-driven innovation. With its highly developed connectivity ecosystem, robust regulatory environment and strong international network links, Singapore plays a central role in enabling the growth of the digital economy across Asia Pacific.
In this context, Singapore serves as one of the primary regional hubs, supporting high-value and latency-sensitive digital services such as edge computing deployments, international data traffic management and regional digital service platforms.
To support the burgeoning demand for AI and cloud computing across the region, complementary infrastructure resources across Asia Pacific can help provide additional capacity for compute-intensive workloads, including AI inference, machine learning and large-scale data processing. This cross-border model enables Singapore to remain the connectivity and innovation anchor of the ASEAN digital ecosystem, while regional infrastructure supports the scaling of digital capacity.
BDC’s collaborations with ecosystem partners, including major telecommunications companies and global technology firms, also help expand connectivity networks beyond Asia Pacific, further reinforcing Singapore’s role as a key regional interconnection hub.
One such ecosystem partner is Zenlayer, a leading global edge cloud and connectivity provider with a well-established customer base across Asia Pacific, North America and Europe. Through this partnership, BDC continues to strengthen its regional and international network connectivity anchored in Singapore.
This expanded network reach supports low-latency cross-border digital infrastructure integration, enabling hyperscalers to scale efficiently across markets while leveraging Singapore as one of the core regional gateways for digital services.
Catalysing Singapore’s AI-driven digital growth
Looking ahead, BDC will continue to leverage its operating model as a glocal platform, combining regional scale with deep local execution capabilities to expand across Asia Pacific. The Company’s strategy focuses on connecting key economic corridors, developing high-density, utility-integrated campuses, and working with ecosystem partners to align digital infrastructure growth with evolving energy pathways.
Anchored in Singapore as its strategic regional hub, BDC’s investments and partnerships contribute to the development of a robust digital infrastructure ecosystem that supports AI-driven workloads and cross-border connectivity.
BDC is also adopting an industry–academia–research collaboration mode， bringing together industry partners, universities and research institutes to accelerate innovation in AI infrastructure, advanced cooling technologies and sustainable energy systems. This integrated approach supports the development of new technologies while nurturing local talent and strengthening Singapore’s innovation ecosystem.
BDC’s initiatives in hydrogen, low-carbon power solutions and energy storage further contribute to the growth of Singapore’s green economy, catalysing investment in sustainable energy infrastructure and support the transition towards lower-carbon digital operations.
BDC’s efforts support the creation of high-value jobs and the development of specialised technical expertise in Singapore, spanning engineering, digital infrastructure and advanced energy systems. In addition, BDC will work with universities, research institutes and industry partners to support talent development initiatives, including internships, training programmes and collaborative research opportunities, contributing to the development of a strong local talent pipeline for Singapore’s AI and digital infrastructure ecosystem.
Collectively, these contributions reinforce Singapore’s position as a leading AI and digital infrastructure hub in Asia Pacific, underpinned by resilient, efficient and sustainable infrastructure.
Hashtag: #BridgeDataCentres #Singapore
The issuer is solely responsible for the content of this announcement.
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