Sembcorp Industries, through its wholly-owned subsidiary, Sembcorp Power Pte Ltd, has signed long-term power purchase agreements (PPAs) with subsidiaries under ST Telemedia Global Data Centres to power its data centres in Singapore.
Under the PPAs, Sembcorp Power will supply the data centres with up to 100MW of power over a contract period of between eight to 10 years.
The PPAs add to Sembcorp’s existing portfolio that includes the 18-year PPA with Micron and the 10-year PPA with Singapore Telecommunications Z74 (Singtel). The PPAs were signed in February and May respectively. The PPA portfolio is said to provide earnings stability and visibility for the group.
The PPAs signed with ST Telemedia will be accretive to Sembcorp’s earnings beginning with the FY2023 ending Dec 31.
As at 9.05am, shares in Sembcorp are trading 4 cents higher or 0.79% up at $5.13.
