SingTel: Singapore Telecommunications secures $476 million green loan

Singapore Telecommunications (SingTel) said on Friday that it had secured a S$643 million ($476.16 million) green loan to finance the development of a new 58 megawatt (MW) data centre in the city-state.

Lenders DBS Group, OCBC, Standard Chartered, HSBC, and United Overseas Bank have financed the five-year loan, SingTel said in a statement.

Green loans, used to finance the development of sustainable projects, underscore the urgent need for data centre operators to reconcile their climate goals with the explosive growth of artificial intelligence (AI) and cloud computing.

“This loan will enable us to support Singapore’s digital economy while reducing our carbon footprint in keeping with our net zero goals,” Arthur Lang, SingTel’s group chief financial officer, said in the statement.

The DC Tuas data centre, expected to be operational in 2026, will provide a high-density environment suited for AI workloads.

SingTel, Southeast Asia’s largest telecoms provider, secured a S$535 million green loan in December 2023 to refinance its debt and develop two other data centres in the city-state.

($1 = 1.3504 Singapore dollars)