SGD$643 million green loan backs Singtel’s next-gen data centre

[SINGAPORE] Singtel’s data centre arm, Nxera, is developing a new generation of more sustainable, artificial intelligence (AI)-ready data centres to support the advancement of AI in Singapore and the region.

The development of DC Tuas – a high-efficiency, AI-ready data centre – is aligned with Singapore’s National AI Strategy 2.0 and green information and communications technology (ICT) agenda.

The data centre will be backed by a five-year SGD$643 million green loan. The 58-megawatt facility, slated to go live in 2026, will support AI workloads in a high-density environment and operate at industry-leading power-efficiency levels.

Standard Chartered, acting as the facility agent and one of the coordinators for the green loan, played a role in supporting the transaction that proposes funding for the development and capital expenditure of DC Tuas.

In addition, the green loan aligns with the Monetary Authority of Singapore’s Singapore-Asia Taxonomy for Sustainable Finance, and is the first loan in the ICT sector to meet this taxonomy.

Chow Wan Thonh, head of coverage for Singapore and Asean at Standard Chartered, said: “We value the strong partnership with Singtel and are pleased to be able to continue to support the sustainable development of the industry and next-generation digital infrastructure. Supporting Singtel’s green loan for DC Tuas is an example of how we continue to support Asia’s transition to lower-carbon infrastructure.”

Arthur Lang, Singtel’s group chief financial officer, called the sustainable AI data-centre project “absolutely the right thing to do for generations to come”. These were some of his thoughts on the subject:

How does the green loan for DC Tuas align with Singtel’s wider sustainability strategy?

Sustainability has long been a strategic focus for Singtel. In fact, we published our first sustainability report more than 15 years ago, well before environmental, social and governance considerations became mainstream.

We believe that sustainability is fundamentally the right thing to do, both from an environmental and business perspective. In that spirit, we have been embedding sustainability principles across all aspects of our operations, including how we finance projects.

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The development of DC Tuas is aligned with our sustainability goals, and it has already achieved the Green Mark Platinum certification by Singapore’s Building and Construction Authority – the highest accolade for environmental sustainability. 

How is green financing being integrated into Singtel’s broader financial strategy?

Green financing is now an integral part of our treasury strategy. It opens up additional channels of funding and liquidity from banking partners who are equally committed to sustainability. Sustainability-linked loans encompass sustainability performance targets, and banks offer slightly more favourable interest rates to encourage sustainable financing which seeks to benefit the environment. This makes sustainable financing not only the responsible option, but also the economically sound one.

Green financing is not about ticking a box or complying with regulations. It reflects our belief that sustainability must be embedded into the way we operate, from financial management to how we serve our customers.

How will the green loan be deployed?

The full proceeds of the SGD$643 million loan will be channelled into the construction and fit-out of DC Tuas. Once completed and stabilised, DC Tuas will be one of the largest and most power-efficient data centres in Singapore, with a projected power usage effectiveness of 1.25.

What are some of the key sustainability features?

DC Tuas has been developed as a high-performance data centre with industry-leading energy efficiency. Several features contributed to this achievement.

The facility will feature cutting-edge technologies such as liquid cooling – a substantial upgrade from traditional air cooling – and highly efficient electrical systems that minimise energy loss. It is also designed with a strong emphasis on renewable energy and water usage minimisation and recycling. Solar panels fitted on the rooftop will contribute to DC Tuas’ renewable energy supply.

DC Tuas is being positioned for AI workloads. What unique advantages does the facility offer to clients in this space?

DC Tuas has been purpose-built to support high-density AI workloads, which require significantly more power than traditional data-centre applications.

While a typical rack used for general compute and storage may draw around 10 kilowatts, AI workloads can demand up to 150 kilowatts per rack. Our adoption of liquid cooling allows us to manage this higher power density far more efficiently. 

Could you share more about Singtel’s partnership with Standard Chartered?

Standard Chartered is one of the facility agents and green loan coordinators for the green loan for DC Tuas; the bank has also supported similar arrangements for our other data centres, including Kim Chuan 2 and DC West in Jurong.

Standard Chartered’s consistent support across multiple projects reflects our shared commitment to building more sustainable digital infrastructure.

Chow Wan Thonh, head of coverage for Singapore and Asean at Standard Chartered, shares her thoughts on the subject as well:

What makes Singtel’s DC Tuas project a strong candidate for sustainable financing?

DC Tuas is a compelling example of environmentally aware digital infrastructure.

It has the potential to become one of the most power-efficient multi-tenanted data centres in the region. This reflects Singtel’s strong commitment not only to sustainable design, but also to long-term operational efficiency.

What role can climate finance play in supporting climate resilience and sustainable infrastructure?

Earlier this year, we published our Southeast Asia’s Green Economy Report 2025, which showed data-centre demand in the region is expected to grow at a compound annual growth rate of 19 per cent through 2030, driven by an increase in both AI and non-AI workloads.

Standard Chartered is focused on deploying sustainable and transition finance to help data-centre operators reduce their carbon emissions.

This includes investing in more sustainable infrastructure, enabling connectivity to clean energy sources, and supporting on-site renewable energy generation.

As we scale up our sustainable finance activities, we see significant opportunities to support clients as they decarbonise and transition to lower-carbon business models, thereby strengthening their long-term resilience and competitiveness.

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