Nxera Singapore, the artificial intelligence (AI) data centre arm of Singtel Group, and Sembcorp Utilities Pte Ltd, a wholly owned subsidiary of Sembcorp Industries, have signed a memorandum of understanding (MOU) to explore data centre energy solutions for Nxeraโs data centres in Singapore.
The collaboration will assess potential options to meet the growing electricity requirements of AI-driven infrastructure while reducing its carbon footprint. The proposed data centre energy solutions include low-carbon hydrogen-based power generation, biomethane-based electricity generation, vertical building-applied photovoltaics and renewable energy imports from Malaysia.
The collaboration brings together Nxeraโs data centre operations and Sembcorpโs energy capabilities to assess potential supply arrangements. The companies will also examine the potential use of energy from a 2.2 GWp floating solar project at Linggiu Reservoir in Johor, Malaysia. The initiative could provide an avenue to support Singaporeโs digital infrastructure.
Low-Carbon Power Options Under Review
Koh Chiap Khiong, President and CEO of Gas and Related Services and CEO of Singapore at Sembcorp, said, โAs 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.โ
Singapore Malaysia Energy Cooperation
The MOU was signed in the presence of Dr Tan See Leng, Singaporeโs Minister for Energy, Trade and Industry (Energy and Industry), and Datuk Amar Haji Fadillah bin Haji Yusof, Malaysiaโs Deputy Prime Minister and Minister of Energy Transition and Water Transformation.
Bill Chang, CEO of Nxera and Singtelโs Digital InfraCo unit, said, โAI 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 Nxeraโs long-term development in Singapore while supporting Singaporeโs digital ambitions.โ