Red Dot Analytics, a Singapore-based company that develops AI and digital twin technology for data centers, has raised several million dollars in a pre-A funding round led by Granite Asia.

The company, a spin-off from Nanyang Technological University, plans to use the funding to expand its operations in Asia-Pacific and invest in new AI frameworks for data center infrastructure.

Red Dot Analytics said its platform can help data centers reduce energy use and operating risks as the industry faces growing electricity demand.

Red Dot Analytics was founded by Professor Yonggang Wen and is led by CEO Dr. Jimin Jia.

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🔗 Source: Red Dot Analytics

🧠 Food for thought

1️⃣ Energy costs create compelling economics for data center efficiency solutions

Energy expenses represent 30-50% of a data center’s total operating costs, making efficiency improvements directly translate to substantial bottom-line impact 1.

This cost burden has only intensified as global data centers now consume significant amounts of electricity—collectively using more energy than some countries, such as Germany 1.

For context, Google’s data centers alone consumed 260 megawatts in 2011, enough to power 200,000 homes, demonstrating the massive scale of energy consumption in this sector 2.

RDA’s AI-powered optimization platform addresses this critical pain point by targeting the biggest expense category for data center operators.

The financial pressure is particularly acute given that a single data center can consume as much power as a small city, meaning even modest efficiency gains can generate millions in annual savings 1.

2️⃣ Singapore’s regulatory framework creates tailwind for sustainable data center technologies

Singapore’s recently launched Green Data Centre Roadmap specifically targets a Power Usage Effectiveness (PUE) of 1.3 or lower for new “green data centers,” creating regulatory demand for solutions like RDA’s platform 3.

The government plans to add at least 300 megawatts of additional data center capacity while maintaining its net-zero emissions target by 2050, requiring advanced efficiency technologies to achieve this balance 3.

This regulatory push comes at a critical time, as the industry has already achieved significant improvements—leading cloud providers like Google and Facebook improved their average PUE from 2.5 in 2009 to around 1.2 by 2014, but further gains require more sophisticated approaches 2.

RDA’s timing aligns well with Singapore’s collaboration between IMDA and industry stakeholders to develop enhanced standards and certifications for energy-efficient data centers 3.

The company’s spin-off from NTU Singapore and local presence positions it to benefit from this regulatory momentum while serving as a model for other Asia-Pacific markets implementing similar sustainability requirements.

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