Sembcorp Inks Landmark Renewable Energy Deal with Equinix for Data Centers in Singapore

Sembcorp Industries (Sembcorp) has announced a significant milestone as its subsidiary, Sembcorp Power Pte Ltd (Sembcorp Power), signs two long-term power purchase agreements (PPAs) with Equinix, Inc. subsidiaries for their data center operations in Singapore.

Under these agreements, Sembcorp Power will provide a maximum capacity of 75MWp from its renewable energy portfolio and 30MW from its power generation portfolio to Equinix for up to 18 years. This marks Equinix’s first renewable energy PPA in Singapore, with the supply sourced from Sembcorp’s solar assets. Sembcorp is presently the largest solar energy provider in Singapore, boasting a portfolio of 727MWp.

As a key player in Asia’s renewables sector, Sembcorp offers green solutions to customers, aligning with their decarbonization efforts while addressing energy security and stability concerns through long-term PPAs. The deal with Equinix further strengthens Sembcorp’s gas-fired power generation portfolio in Singapore, increasing its long-term contracted capacity from 74% to 77%.

These agreements with Equinix contribute to Sembcorp’s existing long-term PPA contracts, ensuring a robust and steady stream of operating cash flow for the Group. The PPAs are expected to bolster Sembcorp’s earnings for the financial year ending December 31, 2024