Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries, and Nxera Singapore, the AI data centre arm of Singtel Group, have signed a Memorandum of Understanding (MOU) to supply renewable and low-carbon energy to Nxera’s data centres in Singapore.
The agreement brings together Sembcorp’s energy capabilities and Nxera’s data centre expertise to assess scalable solutions that could support Singapore’s growing digital economy while strengthening energy resilience and cutting carbon emissions.
Exploring hydrogen, biomethane and floating solar
Potential solutions under exploration 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. The initiatives are intended to lower Nxera’s carbon footprint even as its operations expand.
The MOU was formally exchanged at the Singapore International Energy Week (SIEW) 2026, in the presence of Dr Tan See Leng, Singapore’s Minister for Energy, Trade and Industry (Energy and Industry), and Datuk Amar Haji Fadillah bin Haji Yusof, Malaysia’s Deputy Prime Minister and Minister of Energy Transition and Water Transformation.
“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,” said Koh Chiap Khiong, President & CEO, Gas and Related Services and CEO of Singapore, Sembcorp.
Powering Singapore’s AI-ready infrastructure
Bill Chang, CEO of Nxera and Singtel‘s Digital InfraCo unit, said AI was driving a step-change in the power needs of data centres, making the choice of energy source critical in a land- and resource-constrained market such as Singapore.
“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,” said Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit.
Nxera is majority-owned by Singtel Group, with global investment firm KKR holding a 20 per cent stake since 2023. The company operates data centres across the Asia Pacific region, serving enterprises, hyperscalers and government agencies. Sembcorp, headquartered in Singapore, has a balanced energy portfolio of 35.2GW, including 21.8GW of gross renewable energy capacity, across 11 countries.
