DayOne and Nxera have respectively signed memorandums of understanding on power supply with Shengke Public Utilities (Sembcorp Utilities) to support its data center development projects in Asia. Announcements released by both companies this week highlight that data center operators are facing increasing pressure to provide sufficient energy to support the high-power-consuming AI and cloud computing workloads.

Currently, the expansion of data centers in the region is being severely constrained by power supply bottlenecks, as the power grid struggles to keep up with the growth rate. Industry analysts predict that by the mid-2030s, the electricity consumption of these facilities will exceed 1000 terawatt-hours, whereas it is currently less than 200 terawatt-hours.

As grid construction lags behind demand, especially in Southeast Asian countries such as Indonesia, Malaysia, and Thailand, governments are shifting from a more open approval process to stricter requirements, covering aspects such as energy intensity, water usage, and grid sharing.

Super-large cloud service providers and data center operators are reducing their complete reliance on the public power grid, turning to explore independent power plants, on-site power generation for data centers, and direct deployment of private renewable energy solutions. Data center developers are also collaborating with utility companies to build on-site or dedicated power supply solutions.

Nxera Exploring Renewable and Low-Carbon Energy

At this week's Singapore International Energy Week (SIEW), Nxera announced a partnership with Sengkong Industries (Sembcorp Industries) to supply renewable and low-carbon energy to its data centers in Singapore.

Nxera is the data center business department under Singtel.

"AI is driving a stepwise change in the power demand of data centers, and in a market like Singapore where land and resources are limited, it is crucial for us to obtain this power," said Nxera and the CEO of the new telecommunications Digital InfraCo department, Bill Chang.

The two companies will explore potential solutions, including low-carbon and hydrogen energy power generation, power generation based on biomethane, the application of photovoltaic technology in vertical buildings, as well as importing renewable energy from the 2.2GWp floating solar project at the Linggiu reservoir in Johor State, Malaysia.

Nxera indicates that, with the expansion of their business, these measures will help to reduce the company's carbon footprint.

Chang said, "Collaborating with Sengkore allows us to have more options in powering growth in a sustainable and responsible manner. Enhancing energy resilience will be crucial for supporting the long-term development of Nxera in Singapore as well as advancing Singapore's digital ambitions."

Integrate power planning into data center development

At the same time, DayOne is collaborating with Shengke to advance their "self-powered" ( Bring Your Own Power ) initiative. This plan incorporates power planning into the earliest stages of data center development in order to identify and secure suitable energy solutions. The aim of this approach is to reduce risks, address the increasingly tense power market, and provide customers with more confidence when scaling up their operations.

Both parties have agreed to evaluate solutions in multiple areas, including on-site power infrastructure and power generation, renewable energy supply, as well as operation and maintenance services.

DayOne CEO Jamie Khoo stated that collaborating with Shengke will provide the company with the opportunity to explore integrated data center, power, and energy solutions, as they continue to expand their regional footprint.

She said, "Expanding digital infrastructure means considering the energy pathways to power it from the very beginning. Our approach is to secure key resources as early as possible—including electricity, land, water, and connectivity—so that we can accelerate implementation while building in a long-term responsible manner."

According to the terms of the agreement, DayOne and Shengke will jointly assess the feasibility and business case of energy solutions related to the agreed-upon projects, as well as potential implementation pathways. This framework allows both parties to explore multiple areas, including reliable and cost-effective power supply solutions, power generation and infrastructure, fuel supply and storage, renewable energy solutions, as well as related technologies and operational services.

DayOne indicates that the memorandum of understanding it signed with Shengke will be based on the company's existing electricity and energy initiatives. The company's goal is to achieve 100% energy from renewable sources by 2030, provided that market conditions permit.

In Singapore, DayOne has signed a power purchase agreement with Singtel for its upcoming SG1 data center, which will be powered entirely by renewable energy. In June 2026, this data center operator announced the signing of a renewable energy supply agreement in Malaysia, covering approximately 1.5GWp of solar installed capacity and 2.2GWh of battery storage, as part of that country's corporate renewable energy supply program ( CRESS ). DayOne also signed a power purchase agreement to supply renewable energy to its data center located in the Chonburi Technology Park in Thailand.