Singapore Telecommunications (Singtel) announced on Friday it has secured a S$643 million (US$476.16 million) green loan to fund the construction of a new 58-megawatt (MW) data center in Singapore. The financing was provided by a consortium of major banks: DBS Group, OCBC, Standard Chartered, HSBC, and United Overseas Bank.
The five-year loan will support the development of the DC Tuas data center, slated to be operational in 2026. Designed with high-density capabilities, the facility will be optimized to handle the intensive workloads associated with artificial intelligence (AI) and cloud computing.
This move underscores the growing emphasis on sustainable practices within the data center industry, particularly as the demand for AI and cloud services surges. Green loans, like the one secured by Singtel, are specifically earmarked for environmentally friendly projects.
According to Arthur Lang, Singtel’s group chief financial officer, in a released statement, this loan will enable them to support Singapore’s digital economy while reducing their carbon footprint in keeping with their net zero goals. The company emphasized the project’s alignment with its commitment to achieving net-zero emissions.
This isn’t Singtel’s first foray into green financing for data centers. In December 2023, the telecom giant secured a S$535 million green loan to refinance existing debt and support the development of two other data centers in Singapore. These investments highlight Singtel’s commitment to expanding its data center capacity while prioritizing environmental sustainability.
