Sembcorp Utilities Pte Ltd, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), has entered into a Memorandum of Understanding (MOU) with Nxera Singapore (Nxera), the AI data centre arm of Singtel Group, to explore the supply of renewable and low-carbon energy to Nxera’s data centres in Singapore. The agreement establishes a framework for both companies to assess scalable energy solutions that can meet the requirements of Singapore’s expanding digital economy while improving energy resilience and reducing carbon emissions. The collaboration focuses on identifying sustainable options for data centre energy supply as demand for digital infrastructure continues to grow.
The potential solutions under consideration include low-carbon hydrogen-based generation, biomethane-based power generation, vertical building-applied photovoltaics and renewable energy imports from the 2.2GWp floating solar project at Linggiu Reservoir in Johor, Malaysia. Through these initiatives, the companies aim to explore opportunities to reduce Nxera’s carbon footprint while accommodating the expansion of its operations. The proposed approaches bring together Sembcorp’s energy capabilities and Nxera’s data centre expertise to evaluate options that could support the long-term energy requirements of Singapore’s digital infrastructure.
MOU Exchanged at Singapore International Energy Week 2026
The data centre energy supply MOU was formally exchanged during the Singapore International Energy Week (SIEW) 2026. The exchange took place in the presence of 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.
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.”
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.”
