Sembcorp Partners with Nxera to Explore Low-Carbon Energy for Data Centres in Singapore

The agreement was formally exchanged at Singapore International Energy Week (SIEW) 2026, in the presence of Singapore’s Minister for Energy, Trade and Industry, Dr Tan See Leng, and Malaysia’s Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Datuk Amar Haji Fadillah bin Haji Yusof.

Exploring Renewable and Low-Carbon Energy Sources

Under the agreement, Sembcorp and Nxera will assess several potential energy solutions for Nxera’s data centres in Singapore. These include hydrogen-based power generation, biomethane-based electricity generation, and building-integrated solar panels installed vertically on building surfaces.

The companies will also explore renewable electricity imports from a 2.2 GWp floating solar project at Linggiu Reservoir in Johor, Malaysia. The project could provide another potential source of renewable power for Singapore’s growing digital infrastructure sector.

Supporting Data Centre Growth and Energy Resilience

The collaboration comes as demand for electricity increases alongside the expansion of artificial intelligence (AI) and digital infrastructure. Data centres require reliable power to support computing, data storage and AI workloads.

Singapore faces land and resource constraints, making energy efficiency, diversified power sources and lower-carbon electricity increasingly important for the development of its data centre industry.

Leadership Comments

Koh Chiap Khiong, President & CEO, Gas and Related Services and CEO of Singapore, Sembcorp, said, “As 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.”

Mr Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit 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. Working with Sembcorp gives us more options to power our 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.”

About Sembcorp

Sembcorp Industries is a Singapore-based energy and urban development company. Through its energy businesses, the company provides power and energy solutions, including renewable energy and other generation sources. Its wholly owned subsidiary, Sembcorp Utilities, is involved in the collaboration with Nxera.

About Nxera

Nxera is the AI data centre business of Singtel Group, focused on developing and operating digital infrastructure to support growing data centre and AI computing requirements. In Singapore, the company is exploring lower-carbon energy options to support its operations and future growth.

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