Sembcorp Utilities, a subsidiary of Sembcorp Industries, and Nxera Singapore, the AI data centre arm of Singtel Group, have signed a memorandum of understanding to supply renewable and low-carbon energy to Nxera’s data centres in Singapore. The MOU was exchanged at Singapore International Energy Week 2026, with Singapore’s Minister for Energy, Trade and Industry and Malaysia’s Deputy Prime Minister present.
The agreement is to assess options rather than commit to a build. 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. The companies said these could support Singapore’s digital economy, strengthen energy resilience and reduce carbon emissions as Nxera grows.
Koh Chiap Khiong, President and CEO of Gas and Related Services and CEO of Singapore at Sembcorp, tied the deal to AI demand. “As AI adoption accelerates globally, demand for reliable, scalable and lower-carbon energy continues to grow,” he said.
For Nxera, the issue is where power comes from in a land- and resource-constrained market. “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,” said Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit.
Nxera is a carrier-neutral operator with more than 20 years of experience, and KKR acquired a 20% stake in it in 2023. Sembcorp reports a balanced energy portfolio of 35.2GW, including 21.8GW of gross renewable capacity, across 11 countries.
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