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Our 2026 picks: Singapore Telecommunications — Scaling AI infrastructure play to broaden growth

Nurdianah Md Nur
Nurdianah Md Nur • 4 min read
Our 2026 picks: Singapore Telecommunications — Scaling AI infrastructure play to broaden growth
The telco’s AI and data centre push, including the new DC Tuas, adds a new growth engine to Singtel’s business. Photo: Singtel
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Singapore Telecommunications (Singtel) has been reshaping itself as an enterprise AI infrastructure platform, even as it retains mobile networks, regional operator stakes and the cash flow to lift dividends.

On Feb 9, its data centre arm Nxera opened a 58MW AI-ready facility in Tuas. The multi-tenanted data centre offers direct-to-chip liquid cooling for next-gen Graphics Processing Unit (GPU) workloads. It is said to be Singapore’s only data centre integrated with a cable landing station, providing direct access to both international and domestic networks. According to Nxera, more than 90% of DC Tuas’ capacity was committed to customers even before its launch.

The launch of DC Tuas signals a broader push by Singtel to scale its data centre footprint through both construction and acquisitions. On Feb 4, it confirmed a partnership with KKR to buy the remaining 82% of ST Telemedia Global Data Centres (STT GDC) for $6.6 billion, valuing the platform at $13.8 billion. The acquisition adds STT GDC’s 2.3GW of design capacity across 12 countries to Nxera’s growing footprint. Nxera is scaling toward 400MW overall, with new AI-ready facilities in Batam and Johor expected to come online in the second half of 2026. DBS analyst Sachin Mittal, who carries the street-high target of $5.71, calls it “a long-term growth driver at a small cost”.

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