Temasek Holdings, Singapore’s sovereign wealth fund, plans to more than double its exposure to artificial intelligence (AI) to up to 15 per cent of its portfolio by end March, 2031, from 6 per cent currently. It will focus its capital on energy and data centers, semiconductors, cloud services providers, foundation models, and AI applications and software infrastructure, the firm says in a press release recently.
At the same time, it also plans to increase by five times its investment into ageing infrastructure and grid modernisation, renewable and nuclear energy, energy storage, and breakthrough decarbonisation technologies, from the current 1 per cent of portfolio value to 5 per cent by 31st March, 2031, the end of its financial year. These investments are driven by rising demand for electricity from AI data centers and electrification efforts.
Temasek, through one of its newly refreshed entities, Temasek Global Investments (TGI) has so far over the year invested in Anthropic and OpenAI in the US, among others, with the strategy heavily focused on fewer but larger and higher-conviction plays which align with its expertise.
TGI is one of three newly structured entities formed in April under the umbrella of Temasek International as its institutional enabler. The other two entities are Temasek Singapore (TSG) and Temasek Partnership Solutions (TPS). All of these structures will continue to operate as OneTemasek.
The group has invested S$51 billion and divested S$31 billion, resulting in a net investment of S$20 billion up to end March 2026, according to its statement. As at 31 March 2026, Temasek has a net portfolio value of S$518 billion (US$ 401 billion), up S$ 49 billion from last year.