Nxera Singapore and Sembcorp Utilities have signed a memorandum of understanding (MoU) to secure renewable and low-carbon electricity supplies for its Singapore data centre facilities.
Sembcorp Utilities is a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), while Nxera is the AI data centre subsidiary of Singtel Group.
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The parties will assess scalable energy solutions for Singapore’s expanding digital economy.
The arrangement aims to improve power resilience and decrease carbon emissions across Nxera’s expanding operational footprint.
Sembcorp Singapore CEO and gas and related services CEO Koh Chiap Khiong 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.”
Under the arrangement, the organisations will evaluate several clean energy alternatives.
These include biomethane-based power generation, vertical building-applied photovoltaics, and low-carbon hydrogen-based generation.
They are also studying cross-border imports of renewable electricity from a 2.2GWp floating solar project situated at Linggiu Reservoir in Johor, Malaysia.
Nxera and Singtel Digital InfraCo unit CEO Bill Chang 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.”
The formal exchange of the agreement took place during Singapore International Energy Week (SIEW) 2026.
The exchange was held in the presence of Singapore Energy, Trade and Industry (Energy and Industry) Minister Dr Tan See Leng and Malaysia Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Amar Haji Fadillah bin Haji Yusof.
Nxera operates data centre infrastructure for enterprises, hyperscale operators, and state bodies across the Asia-Pacific territory.
