Sembcorp inks power purchase agreements with Temasek-backed ST Telemedia Global Data Centres

SEMBCORP Industries’ wholly owned subsidiary Sembcorp Power has signed long-term power purchase agreements (PPAs) with ST Telemedia Global Data Centres (STT GDC) to power the latter’s data centres in Singapore.

STT GDC’s parent, Singapore Technologies Telemedia, is fully owned by Temasek.

Under the PPAs, Sembcorp will supply STT GDC’s data centres with up to 100 megawatts of power over eight to 10 years.

The group expects these new contracts with STT GDC to be accretive to earnings from the financial year ending Dec 31, 2023.

On Monday (Oct 2), Sembcorp said the contracts strengthen the group’s long-term contracted position in Singapore as they build on an existing portfolio comprising an 18-year PPA with Micron, and another 10-year PPA with Singtel.

Both deals were announced earlier this year.

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“Building the portfolio of PPAs is a deliberate strategy that provides earnings stability and visibility for the group,” said Sembcorp.

Shares of Sembcorp closed Friday S$0.02 or 0.4 per cent lower at S$5.09.