APAC data center developer Nxera Singapore has tapped Singaporean energy firm Sembcorp to supply renewable, low-carbon energy to power its data centers in the city-state.

The companies inked a non-binding Memorandum of Understanding (MoU) to explore potential power solutions, which include low-carbon hydrogen-based generation, biomethane-based power generation, vertical building-applied photovoltaics, and renewable energy imports from the 2.2GW floating solar project at Linggiu Reservoir in Johor, Malaysia.

Commenting on the agreement, 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 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.”

Nxera Singapore is the AI data center arm of Singtel Group. Singtel is closing a number of small legacy data centers in Singapore, but still operates several large facilities in the city-state through the unit. Earlier this year, the company opened its 58MW DC Tuas data center in Singapore, its largest facility in Singapore at 58MW. The addition of the data center brought the company’s total capacity in the country to 120MW.

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

Sembcorp has signed several power agreements with data center providers over recent years. In March, the company signed a 25-year energy supply agreement with a subsidiary of Meta, Malkoha Pte, to construct, own, and operate a 150MW floating solar project in Singapore.