Singapore – Sembcorp Utilities and Nxera Singapore have signed a Memorandum of Understanding (MOU) to supply renewable and low-carbon energy to Nxera’s data centres in Singapore.
Sembcorp Utilities is a wholly-owned subsidiary of Sembcorp Industries, while Nxera is the AI data centre arm of Singtel Group.
Under the agreement, the two companies will assess scalable solutions that could support Singapore’s growing digital economy. They say the work is also aimed at enhancing energy resilience and reducing carbon emissions.
Several options are on the table, including low-carbon hydrogen-based generation, biomethane-based power generation and vertical building-applied photovoltaics. Renewable energy imports from the 2.2GWp floating solar project at Linggiu Reservoir in Johor, Malaysia, are also being explored.
The companies say these initiatives would help lower Nxera’s carbon footprint even as its operations grow. However, the MOU covers the assessment of potential solutions, and no timelines or capacities have been disclosed for any of the options.
The announcement reflects the pressure that AI workloads are placing on data centre power supply. Mr Koh Chiap Khiong, President & CEO, Gas and Related Services and CEO of Singapore, Sembcorp, said, “As AI adoption accelerates globally, demand for reliable, scalable and lower-carbon energy continues to grow.”
“With a proven track record of powering the data centre sector, Sembcorp is well-positioned to support this growth through our diversified energy portfolio. Our partnership with Nxera further affirms our shared ambition to enable the next generation of digital infrastructure while advancing the global energy transition,” Khiong further emphasised.
From the customer’s side, Mr Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit said, “AI is driving a step-change in the power needs of data centres, and in a land- and resource-constrained market like Singapore, how we source that power matters.”
“Working with Sembcorp gives us more options to power our growth sustainably and responsibly. Strengthening our energy resilience will be critical to underpinning Nxera’s long-term development in Singapore while supporting Singapore’s digital ambitions,” Chang added.
The MOU was formally exchanged on 26 October. Dr Tan See Leng, Minister for Energy, Trade and Industry (Energy and Industry), Singapore, and Datuk Amar Haji Fadillah bin Haji Yusof, Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Malaysia, were present.
