SingTel has secured a S$643 million ($476 million) green loan to fund the development of a new 58 MW data centre in Singapore.

The financing comes from a group of major lenders, including DBS Group, OCBC, Standard Chartered, HSBC, and United Overseas Bank. Green loans, designed to support environmentally sustainable projects, are becoming increasingly relevant as demand for AI and cloud computing rises.

The upcoming DC Tuas data centre is expected to be operational by 2026, providing a high-density environment tailored for AI workloads. SingTel's group chief financial officer, Arthur Lang, emphasised that the loan aligns with the company's net zero ambitions while supporting Singapore's growing digital economy.

As Southeast Asia's largest telecoms provider, SingTel has been actively investing in sustainable infrastructure. A previous green loan of S$535 million, secured in December 2023, was used to refinance debt and fund two other data centres in Singapore.

The latest financing reinforces the company's commitment to balancing technological advancements with environmental responsibility.