Singapore Telecommunications (SingTel) has secured a S$643 million ($476.16 million) green loan to finance the development of a new 58-megawatt (MW) data centre in Singapore.
The loan, structured as a five-year facility, has been provided by major financial institutions including DBS Group, OCBC, Standard Chartered, HSBC, and United Overseas Bank.
This marks another significant step for SingTel in aligning its infrastructure expansion with sustainability objectives, as green loans are specifically designated for projects that support environmental sustainability and carbon reduction.
The rapid growth of artificial intelligence (AI) and cloud computing has significantly increased the demand for data centres, raising concerns over their environmental impact. Data centres consume vast amounts of electricity and generate substantial carbon emissions, making sustainability a key focus for operators.
The financing of SingTel’s new data centre through a green loan reflects the company’s commitment to reconciling digital infrastructure expansion with climate responsibility. By integrating energy-efficient technologies and sustainable design practices, SingTel aims to reduce its overall carbon footprint while continuing to meet Singapore’s growing digital infrastructure needs.
According to Arthur Lang, SingTel’s Group Chief Financial Officer, the loan will allow the company to support Singapore’s digital economy while maintaining its commitment to achieving net-zero emissions. The new facility, named DC Tuas, is expected to be operational by 2026 and will be designed to accommodate high-density computing environments tailored for AI workloads.
AI-driven applications require significant computational power, and next-generation data centres must be capable of handling such workloads while ensuring energy efficiency. By incorporating advanced cooling technologies, renewable energy sources, and optimized power usage effectiveness (PUE), SingTel aims to create a state-of-the-art facility that balances performance with sustainability.
This is not SingTel’s first green loan; in December 2023, the company secured a S$535 million green loan to refinance existing debt and develop two other data centres in Singapore. These continued investments in sustainable infrastructure reinforce SingTel’s position as a leader in the region’s digital transformation while actively contributing to Singapore’s green energy transition.
The financing of the DC Tuas data centre through a green loan highlights a broader trend in the industry, where sustainability-linked financing is becoming more prevalent. As financial institutions prioritize green investments, companies looking to build new infrastructure must align their projects with environmental, social, and governance (ESG) principles to secure funding.
This shift is particularly relevant for the data centre sector, where power consumption is a critical concern. By obtaining green financing, SingTel is not only enhancing its sustainability credentials but also setting a benchmark for other telecom and cloud service providers in the region.
