Sembcorp and Singtel's Nxera Weigh 2.2 GWp Johor Solar Among Low-Carbon Power Options for Singapore AI Data Centres

Sembcorp Utilities Pte Ltd, a wholly-owned subsidiary of Sembcorp Industries, and Nxera Singapore, the AI data centre arm of Singtel Group, will assess a range of renewable and low-carbon energy solutions under a Memorandum of Understanding covering power supply to Nxera's data centres in Singapore.

The agreement was announced on October 26, 2026.

Sembcorp and Nxera Explore Low-Carbon Energy Solutions

Potential pathways 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.

The collaboration is intended to pair Sembcorp's energy capabilities with Nxera's data centre expertise, with the two companies assessing scalable solutions that could support Singapore's growing digital economy while enhancing energy resilience and reducing carbon emissions.

Signing Witnessed by Ministers from Singapore and Malaysia

The MOU was formally exchanged at 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.

The presence of both ministers underscores 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.

Sembcorp Points to Track Record as AI Demand Grows

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.

Nxera Says Power Sourcing Matters in Resource-Constrained Singapore

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.

Two Trends Behind the Agreement

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 is framed as a way to secure sustainable and responsible power options for its Singapore operations. For Sembcorp, the collaboration extends its track record in powering the data centre sector and leverages its diversified energy portfolio.