Singapore’s telecommunications group Singtel has secured a S$643 million ( US474.6 million ) green loan for its regional data centre arm, Nxera DCT, to fund the development of DC Tuas, a next-generation 58-megawatt data centre.

The five-year loan, backed by DBS, OCBC, Standard Chartered, HSBC, and UOB, bolsters the city-state’s ambitions to expand sustainable digital infrastructure.

The green loan falls under Singtel’s Olives sustainable financing programme, which links the company’s financing strategy to its sustainability targets. It follows a S$535 million green loan secured in December 2023, which was used to refinance and support operations at DC West and DC Kim Chuan.

"DC Tuas will feature a green design and build, as well as next-generation liquid cooling systems, making it ideal for meeting the demand from enterprises for high-intensity compute and AI workloads," says Singtel Group chief financial officer Arthur Lang. "Sustainability is a core part of our data centre business, and this loan enables us to support Singapore’s digital economy while reducing our carbon footprint in line with our net-zero goals."

The data centre has already achieved Green Mark Platinum certification, the highest sustainability standard awarded by the Building and Construction Authority ( BCA ) and the Infocomm Media Development Authority ( IMDA ). This underscores Singtel’s broader commitment to sustainable finance and net-zero operations.

Set to be operational in 2026, DC Tuas will provide enterprises with a high-density, AI-ready environment while maintaining low environmental impact. As Singapore accelerates its digital transformation, the demand for sustainable, high-performance data centres will continue to grow.

The facility is also designed to operate at a power usage effectiveness ( PUE ) of below 1.25, a benchmark that places it among the most energy-efficient data centres globally. Moreover, it will integrate water recycling technologies and highly efficient chilled water systems, ensuring maximum water efficiency in an industry known for high resource consumption.