Singtel has secured a $475.9 million loan for the development of a data center in Singapore.
Singtel’s regional data center arm, Nxera, this week announced a S$643 million five-year green loan to finance the development of the 58MW DC Tuas data center in Singapore.
The loan proceeds will go toward funding the development and capital expenditure of DC Tuas, which is due to go live in 2026.
DBS, OCBC, Standard Chartered, HSBC, and UOB are financing the loan and have been appointed as green loan coordinators.
As part of the green loan criteria, DC Tuas has achieved the Green Mark Platinum certification awarded by Singapore’s Building and Construction Authority and Infocomm Media Development Authority. Singtel said Nxera is committed to achieving scope 1 and 2 net-zero emissions by 2028.
“DC Tuas will feature a green design and build, as well as next-generation liquid cooling systems, making it ideal for meeting the demand from enterprises for high-intensity compute and AI workloads,” said Arthur Lang, Singtel Group CFO. “Sustainability is a core part of our data center business, and we are committed to developing and growing the industry’s most sustainable, next-generation digital assets. This loan will enable us to support Singapore’s digital economy while reducing our carbon footprint in keeping with our net zero goals.”
Singtel broke ground on its latest Singaporean facility, known as DC Tuas, in August 2023. Set to go online in 2025, the eight-story building will offer 58MW of IT load capacity across 120,000 sq ft (11,150 sqm).
As well as DC Tuas, Nxera has also taken over the 570,000 sq ft, 41MW DC West facility and the 21MW Kim Chuan DC 2 from Singtel.
Beyond Singapore, Nxera broke ground on a 64MW data center in Johor, Malaysia, in July 2024. Nxera & Singtel have also partnered with Telkom and Medco Power in Indonesia, as well as Gulf Energy and AIS in Thailand, to develop data centers in Batam and Bangkok, respectively.
Singtel first secured a S$535 million ($317.1m) green loan in December 2023 to refinance borrowings and support the operations of its DC West and DC Kim Chuan data centers.
Singtel is reportedly shutting down five legacy data centers across Singapore amid a push towards its newer, AI-focused sites.
Singtel’s Optus signs S$1.22bn credit facility
The company also recently signed an AU$1.95 billion (US$1.22bn) credit facility with banks for its Australian telecoms unit, Optus.
The committed revolving credit facility involves 12 banks, comprising Australia and New Zealand Banking Group Limited, Bank of China Limited, Sydney Branch, BNP Paribas, Sydney Branch, Citibank, N.A., Sydney Branch, Commonwealth Bank of Australia, DBS Bank Ltd., Australia Branch, Mizuho Bank Ltd., Oversea-Chinese Banking Corporation Limited, Sumitomo Mitsui Banking Corporation, Sydney Branch, The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch, United Overseas Bank Limited, Sydney Branch, and Westpac Banking Corporation.
The money will be used to refinance its existing credit facilities as well as for other general corporate purposes.
Of the Optus deal, Lang said: “We thank our banks for their support and commitment. This demonstrates their confidence in the Group’s improving operating performance as we execute on our Singtel28 strategy for growth, as well as our business fundamentals and credit quality.”
