Sembcorp Industries and Singtel Collaborate to Study Low-Carbon Power Supply Solutions for Data Centres

en.Wedoany.com Reported - On 26 October, Sembcorp Utilities, a wholly-owned subsidiary of Singapore's Sembcorp Industries Group, signed a Memorandum of Understanding with Nxera, the AI data centre business unit of Singtel Group, to study renewable energy and low-carbon electricity supply solutions for Nxera's data centres operating in Singapore. The two parties will focus on assessing technology pathways including low-carbon hydrogen power generation, biomethane power generation, building façade photovoltaics, and cross-border renewable electricity imports. The collaboration document was formally exchanged during the 2026 Singapore International Energy Week.

The low-carbon electricity supply solutions will be developed around Nxera's data centre operational requirements in Singapore. Sembcorp Utilities will contribute its capabilities in energy development, power generation, and electricity supply, while Nxera will provide its data centre development and operations expertise. The two parties will assess the compatibility of different energy technologies with data centre electricity demand and study scalable power supply approaches.

Cross-border electricity supply is one of the key focuses of this collaboration. Sembcorp Industries plans to assess the feasibility of importing renewable electricity from the floating solar project at Linggiu Reservoir in Johor, Malaysia. The project has a planned installed capacity of 2.2 GWp and is intended to supply clean electricity to Singapore through cross-border power transmission arrangements. In addition to imported electricity, the two parties will also study the use of low-carbon hydrogen and biomethane for power generation, as well as the installation of photovoltaic modules on building façades, to provide low-carbon electricity from different sources for data centres.

Sembcorp Industries had previously obtained conditional approval from the Singapore Energy Market Authority for a 300 MW electricity import scheme supported by the Linggiu Reservoir project, with the project expected to commence operations in 2029. This import scheme involves the same cross-border renewable energy project as the data centre power supply collaboration, but the 300 MW represents the previously approved import electricity scale and does not equate to the data centre capacity confirmed for supply to Nxera.