Singapore Telecommunications Singtel has received a S$643 million, about $476 million green loan to fund the construction of a high-level data center in Tuas, Singapore. The 5-year loan comes from major banks with DBS Group, OCBC, and Standard Chartered. HSBC and United Overseas Bank will help build a 58-megawatt data center to meet the improvement needs. requirements for cloud computing and hardware AI-based workloads. This is an important step in Singtel’s promise to be more eco-friendly, as the new data center will incorporate advanced energy-efficient technologies, including next-generation liquid cooling systems, to reduce environmental impact.
Expected to open by 2026, the DC Tuas offers will help improve Singapore’s digital infrastructure and support businesses with high-power computing needs. This investment supports the country’s goal of leading in eco-friendly digital infrastructure. By using green funding, Singtel plans to set new standards for environmentally friendly data centers, promoting both technology growth and sustainability in the fast-growing data center industry.
Optus Secures S$1.22 Billion Credit Facility
Optus, the Australian subsidiary of Singtel, Has obtained a flexible loan of A$1.95 billion (about US$1.22 billion). Twelve banks are supporting the project, including the ANZ, Bank of China, BNP Paribas, and Citibank in Sydney. The amount will be used to pay off old loans and support industry needs.
This financing move underscores the banking sector’s confidence in Optus’ operational performance and strategic direction. Singtel’s group chief financial officer expressed gratitude for the banks’ support, underlining that this commitment reflects confidence in their performance and business fundamentals as they execute their Singtel 28 strategy for the group’s growth.
Green Financing and Sustainability in Data Centers
The data center industry is growing by using green financing and eco-friendly practices to reduce energy use and environmental harm. An example is Vantage Data Centers getting a $3 billion green loan to grow in North America, showing the industry’s focus on eco-friendly growth.
In addition to financial strategies, companies are innovating to enhance sustainability. For instance, Equinix’s data center in Paris repurposes waste heat to warm a local Olympic Aquatics Center, demonstrating a practical approach to energy efficiency. Furthermore, tech giants like Amazon and Google are investing in small modular nuclear reactors to power data centers, aiming to meet the rising energy demands of AI applications while reducing carbon footprints.
Impact on Singapore’s Digital and Cloud Infrastructure
Singapore is experiencing a significant surge in investments aimed at bolstering its digital and cloud infrastructure. Amazon Web Services has announced plans to invest money an additional S$12 billion into its existing cloud infrastructure in Singapore from 2024 to 2028, bringing its total planned investment in the country to over S$23 billion by 2028. This move aims to expand cloud services, enhance AI-driven applications, and support businesses adopting digital transformation. AWS is also launching a top AI program in Singapore to boost innovation and train skilled workers in artificial intelligence.
Likewise, Google has finished expanding its data center and cloud region in Singapore. increasing its total investment in the country’s digital infrastructure to US$5 billion. This expansion is expected to improve cloud services, strengthen Singapore’s position as a data hub in Asia, and support enterprises. In sectors such as finance, healthcare, and e-commerce. With the growing requirement demand for AI and cloud computing, Singapore continues to attract tech giants, reinforcing its status as a regional leader in digital technologies innovation. The government’s ongoing support for smart nation initiatives and green data centers further enhances the country’s long-term digital transformation strategy.
Future Growth and Expansion Plans of Singtel
Singtel is actively pursuing growth and expansion through strategic initiatives. In May 2024, the company launched the Singtel28 (ST28) growth plan, aiming to enhance customer experiences and deliver sustained value to shareholders. Key components of this plan include merging consumer and enterprise units, scaling digital and ICT services, divesting non-core assets, and advancing sustainability goals with a net-zero target set for 2045.
To align with the ST28 strategy, Singtel announced senior management changes in November 2024, expanding its Business Development function into the International Digital Services unit, led by Ms. Anna Yip as CEO. This restructuring aims to strengthen leadership and focus on telco-related digital services. Additionally, Singtel secured a S$643 million green loan in February 2025 to develop a new 58-megawatt data center in Singapore, expected to be operational by 2026, supporting the growing demand for AI and cloud computing services.
Expansion into AI and Cloud Service
In October 2024, Singtel launched RE: AI, an Artificial Intelligence Cloud Service designed to democratize AI access for enterprises and public sector customers. This platform offers a turnkey AI development and deployment environment, combining advanced AI compute infrastructure, including graphics processing units (GPUs) and storage, with diverse networks such as 5G and quantum-safe connections. Delivered through Singtel’s Paragon orchestration platform, RE: AI enables organizations to deploy, manage, and scale AI applications efficiently, eliminating the need for in-house infrastructure and specialized resources.
To enhance its AI capabilities, Singtel’s RE: AI has partnered with Scale AI to drive generative AI innovation across the Asia-Pacific region. This collaboration leverages Scale AI’s data annotation expertise to improve the accuracy of AI solutions offered through RE: AI. Additionally, Singtel has expanded its GPU capacity through a strategic partnership with GMI Cloud, aiming to accelerate AI adoption in the U.S. and Asia-Pacific markets. These initiatives align with Singtel’s broader strategy to become a key enabler of AI and cloud services across the Asia-Pacific region.
