Sembcorp, Nxera partner to supply low-carbon energy to AI data centres

Partnership covers renewable and low-carbon energy for Nxera’s Singapore data centres.

Sembcorp Utilities and Nxera Singapore, the AI data centre arm of Singtel Group, have signed a memorandum of understanding to explore renewable and low-carbon energy supplies for Nxera’s data centres in Singapore.

The companies will assess potential solutions to support the growth of Singapore’s digital economy, strengthen energy resilience, and reduce carbon emissions as data centre operations expand.

Options under consideration include low-carbon hydrogen-based generation, biomethane-based power generation, building-applied photovoltaics, and renewable energy imports from a 2.2-gigawatt-peak floating solar project at Linggiu Reservoir in Johor, Malaysia.

“As AI adoption accelerates globally, demand for reliable, scalable and lower-carbon energy continues to grow,” Koh Chiap Khiong, Sembcorp’s president and CEO of Gas and Related Services and CEO of Singapore, said.

“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,” Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit, said.

The MOU was exchanged at Singapore International Energy Week 2026 in the presence of Tan See Leng, Singapore’s minister for energy, trade and industry, and Datuk Amar Haji Fadillah bin Haji Yusof, Malaysia’s deputy prime minister and minister of energy transition and water transformation.

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