Singtel Secures S$535 mn Green Loan for Data Centre Expansion

Singtel has successfully secured a substantial S$535 million five-year green loan through its subsidiaries, DCW and DCKC. The loan, provided by DBS, OCBC, Standard Chartered Bank, and UOB, marks Singtel’s inaugural green loan and emphasizes its commitment to environmental sustainability.
Singtel Data center offersThe funds from this green loan will serve multiple purposes, including refinancing existing borrowings and supporting the operational needs of Singtel’s data centres, specifically DC West and DC Kim Chuan. To meet the green loan criteria, these data centres must maintain at least a Green Mark GoldPlus certification from Singapore’s Building and Construction Authority, a feat they have already surpassed by attaining the highest green building certification, Green Mark Platinum.

Arthur Lang, Singtel Group Chief Financial Officer, expressed Singtel’s dedication to aligning their financial strategies with environmental goals. Lang stated, “Singtel is committed to aligning our borrowings with our environmental objectives, and we are pleased to work with DBS, OCBC, Standard Chartered Bank, and UOB to invest in a more sustainable future for everyone.”

Singtel intends to leverage the success of its sustainability-linked loans, bonds, and other initiatives through Olives, Singtel Group’s sustainable financing program. Additionally, the company aims to enhance the efficiency of its data centres further by incorporating technologies like liquid cooling and artificial intelligence. These initiatives will not only improve operational efficiency but also contribute to Singtel’s upcoming data centre, DC Tuas, which is poised to further expand its capabilities.

Singtel’s data centre expansion extends beyond Singapore, with partnerships in Indonesia and Thailand. Collaborations with Telkom, Medco Power, GULF, and AIS are underway to develop data centres in Batam and Bangkok, adding significant capacity to Singtel’s portfolio. Once operational in 2025, these sites are projected to elevate Singtel’s combined capacity to over 155MW, with future scalability potential beyond 200MW.

In a significant move earlier in September, global investment firm KKR agreed to invest up to S$1.1 billion for a 20 percent stake in Singtel’s regional data centre business. Singtel’s widespread presence in Asia, Australia, and Africa, catering to over 760 million mobile customers in 21 countries, positions the company as a key player in infrastructure and technology services, boasting over 428 direct points of presence across 362 cities for businesses.

With this green loan, Singtel reinforces its commitment to sustainability while expanding its data centre operations across the region, paving the way for a more environmentally conscious and technologically advanced future.