Nxera Singapore signs low-carbon power MoU with Sembcorp

Nxera Singapore and Sembcorp have signed a non-binding Memorandum of Understanding to supply renewable, low-carbon energy to Nxera's data centers in Singapore, with options spanning four generation routes, including imports from a 2.2GW floating solar project in Malaysia.

The MoU, announced by the two companies, commits them to exploring potential power solutions for Nxera's Singapore facilities. The technologies on the table are:

• Low-carbon hydrogen-based generation
• Biomethane-based power generation
• Vertical building-applied photovoltaics
• Renewable energy imports from the 2.2GW floating solar project at Linggiu Reservoir in Johor, Malaysia

Nxera Singapore is the AI data center arm of Singtel Group. Sembcorp is a Singaporean energy firm with an existing data center power portfolio.

What did the executives say?

Koh Chiap Khiong, president & CEO of Gas and Related Services and CEO of Singapore at 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 center 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."

Bill Chang, CEO of Nxera and Singtel's Digital InfraCo unit, added: "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."

How much capacity does Nxera run today?

Singtel is closing a number of small legacy data centers in Singapore but continues to operate several large facilities through Nxera. Earlier this year, the company opened DC Tuas, its largest facility in the country, at 58MW. That addition brought Nxera's total capacity in Singapore to 120MW.

Across Southeast Asia, Nxera is developing several facilities in partnership with local players and expects to grow total capacity from 200MW to 400MW in the coming years. Facilities in Batam and Johor are due online in the second half of 2026. With those additions, Nxera's operational and pipeline capacity is expected to more than double from 200MW in 2026.

In short: Nxera needs roughly twice the power it consumes today, and it is lining up low-carbon supply ahead of that build-out.

Is this Sembcorp's first data center power deal?

No. Sembcorp has signed several power agreements with data center providers in recent years. In March, the company signed a 25-year energy supply agreement with Malkoha Pte, a subsidiary of Meta, to construct, own and operate a 150MW floating solar project in Singapore.

The Nxera MoU extends that record. It names no capacity figure and sets no tariff, but it maps four specific supply routes to a customer whose load is set to double.