Sembcorp Sign Second Power Purchase Agreement with Equinix

Singapore-headquartered Sembcorp Industries (Sembcorp) on Tuesday announced that its wholly-owned subsidiary, Sembcorp Power Pte Ltd (Sembcorp Power), has signed a long-term renewable energy power purchase agreement (PPA) for a tenure of 15 years with Equinix, Inc., to supply up to 58.5 MW from its renewable energy portfolio in Singapore, starting in 2029.

The PPA adds to an earlier renewable energy agreement signed with Equinix on 29 April 2024, for a supply of a maximum capacity of 75 MW. This brings the total contracted renewable energy capacity with Equinix to 133.5 MW, Sembcorp said in a filing with Singapore Exchange (SGX), the city-state’s stock exchange, this morning.

The solar energy, which will be generated from JTC’s properties on Jurong Island in Singapore, will be harnessed from 60 hectares of vacant land and the rooftops of five JTC buildings, including the Jurong Rock Caverns above-ground facilities and Jurong Island Checkpoint.

This innovative approach to utilising underutilised space will not only generate clean energy but also optimise land use.

According to Equinix, which is based in the US, this renewable energy source will have a significant impact, equivalent to powering over 17,200 four-room Housing and Development Board (HDB) flats annually and reducing over 30,275 tonnes of carbon emissions per year.

Yee May Leong, Managing Director, Singapore, Equinix, said that data centres serve as the foundation of the digital economy, yet the increasing energy demands of AI are impacting national power constraints and emissions targets.

“Equinix is actively addressing these challenges by implementing efficiency best practices and energy procurement strategies that align with our environmental commitments,” Yee added.

The increase in capacity strengthens the strategic partnership between Sembcorp and Equinix, underscoring both companies’ commitment to accelerating the transition to a low-carbon future. Sembcorp is currently the largest solar energy provider in Singapore, with a portfolio of 771 MW, contributing to over half of Singapore’s 2025 solar energy target.

Leading Power Provider

Through its comprehensive suite of energy solutions, Sembcorp is a leading power provider to data centres in Singapore. The signing of the PPA is in the ordinary course of business and is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending 31 December 2024.

Equinix has executed 25 PPAs globally since 2015 and these agreements are expected to contribute about 3.3 million MWh of renewable energy annually to local grids across the US, Australia, France, Finland, India, Italy, Portugal, Spain, Sweden and Singapore once operational.