Nxera Singapore Taps Sembcorp to Supply Low-Carbon Power for AI Data Centers

Nxera Singapore, the AI data center arm of Singtel Group, has signed a non-binding Memorandum of Understanding with Singaporean energy firm Sembcorp to secure renewable, low-carbon power for its data centers in the city-state, as the company scales up its digital infrastructure footprint across Southeast Asia.

The agreement underscores the growing pressure on data center operators to lock in reliable and sustainable energy supplies as AI adoption accelerates globally and demand for compute capacity surges. Under the MoU, the two companies will explore a range of potential power solutions, including low-carbon hydrogen-based generation, biomethane-based power generation, vertical building-applied photovoltaics, and renewable energy imports from the 2.2GW floating solar project at Linggiu Reservoir in Johor, Malaysia.

Koh Chiap Khiong, president and CEO of Gas and Related Services and CEO of Singapore at Sembcorp, said the partnership reflects the company's diversified energy portfolio and its track record in powering the data center sector. "As AI adoption accelerates globally, demand for reliable, scalable and lower-carbon energy continues to grow," he said. "Our partnership with Nxera further affirms our shared ambition to enable the next generation of digital infrastructure while advancing the global energy transition."

Bill Chang, CEO of Nxera and Singtel's Digital InfraCo unit, said the collaboration provides greater flexibility to power the company's 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," he said.

The MoU comes as Nxera consolidates its Singapore operations around larger facilities while closing a number of small legacy data centers. Earlier this year, the company opened its 58MW DC Tuas facility, its largest in Singapore, bringing its total capacity in the country to 120MW. Nxera is also developing several facilities around Southeast Asia in partnership with local players and expects to grow its total capacity from 200MW to 400MW in the coming years, with additional sites in Batam and Johor due online in the second half of 2026.

Sembcorp has been expanding its presence in the data center power market, having signed a 25-year energy supply agreement in March with Malkoha Pte, a subsidiary of Meta, to construct, own, and operate a 150MW floating solar project in Singapore. The latest agreement highlights the increasingly intertwined relationship between energy providers and data center operators as the region's digital infrastructure buildout accelerates.