Sembcorp Utilities Pte Ltd, a wholly-owned subsidiary of Sembcorp Industries, and Nxera Singapore, the AI data centre arm of Singtel Group, have signed a Memorandum of Understanding for the supply of renewable and low-carbon energy to Nxera's data centres in Singapore.

The agreement was announced on October 26, 2026.

Energy Cooperation MOU Exchanged at SIEW 2026

The MOU was formally exchanged at the Singapore International Energy Week (SIEW) 2026 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.

Potential Solutions Under Exploration

The collaboration 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 enhancing energy resilience and reducing carbon emissions.

Potential solutions being explored under the MOU include low-carbon hydrogen-based generation, biomethane-based power generation, vertical building-applied photovoltaics, and renewable energy imports from the 2.2 GWp floating solar project at Linggiu Reservoir in Johor, Malaysia.

According to the companies, these initiatives would help lower Nxera's carbon footprint even as its operations grow.

Executive Perspectives on the Partnership

Koh Chiap Khiong, President & CEO of Gas and Related Services and CEO of Singapore at Sembcorp, said that as AI adoption accelerates globally, demand for reliable, scalable, and lower-carbon energy continues to grow.

He noted that with a proven track record of powering the data centre sector, Sembcorp is well-positioned to support this growth through its diversified energy portfolio.

According to Koh, the partnership with Nxera affirms the companies' 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 that AI is driving a step-change in the power needs of data centres, and that in a land- and resource-constrained market like Singapore, how that power is sourced matters.

Chang stated that working with Sembcorp gives Nxera more options to power its growth sustainably and responsibly, adding that strengthening energy resilience will be critical to underpinning Nxera's long-term development in Singapore while supporting Singapore's digital ambitions.

Context: AI Growth and Energy Demand

The agreement reflects the intersection of two trends highlighted in the announcement: the accelerating global adoption of artificial intelligence and the corresponding rise in demand for reliable, scalable, and lower-carbon energy.

For Nxera, the partnership with Sembcorp secures sustainable and responsible power options for its Singapore operations. The collaboration not only extends Sembcorp's track record in powering the data centre sector but also leverages its diversified energy portfolio.

The signing took place in a bilateral context, with both Singapore's Minister for Energy, Trade and Industry (Energy and Industry) and Malaysia's Deputy Prime Minister and Minister of Energy Transition and Water Transformation present at the exchange, underscoring the cross-border dimension of one of the potential energy sources under review, the 2.2 GWp floating solar project at Linggiu Reservoir in Johor, Malaysia.

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