DayOne and Nxera have moved to secure dedicated energy options in Asia. Both companies signed separate memorandums with Sembcorp Utilities this week. The deals highlight a growing pressure point for digital infrastructure: power availability.
Data centers now support AI, cloud platforms, streaming, enterprise workloads, and telecom services. These systems demand large and steady electricity supplies. In Asia, that demand now grows faster than many power grids can respond.
Industry forecasts suggest a sharp rise ahead. Data centers in the region may consume over 1,000 terawatt hours by the mid-2030s. Today, they use less than 200 terawatt hours. That scale creates major planning issues for operators and governments.
As a result, regulators are tightening approval rules. Countries such as Indonesia, Malaysia, and Thailand now monitor energy use more closely. They also review water use and grid sharing. Developers can no longer assume that public grid access will arrive on time.
This shift pushes operators toward new energy models. They now assess private power plants, onsite generation, and direct renewable supply. These options can improve resilience. They can also increase project complexity and require stronger utility partnerships.
At Singapore International Energy Week, Nxera announced its collaboration with Sembcorp Industries. The companies will explore renewable and lower-carbon power for Singapore data centers. Nxera operates as the data center arm of Singtel.
“AI is driving a step-change in the power needs of data centers, and in a land- and resource-constrained market like Singapore, how we source that power matters,” said Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit.
Nxera and Sembcorp will study several energy options. These include hydrogen-based power, biomethane generation, and vertical-building solar panels. They will also assess renewable imports from the 2.2GWp Linggiu Reservoir floating solar project in Malaysia.
Meanwhile, DayOne is taking a planning-led approach. Its “Bring Your Own Power” model builds energy decisions into early data center design. The company wants to cut delivery risk and improve customer confidence.
“Scaling digital infrastructure means thinking about the energy pathways powering it from the outset,” said Jamie Khoo, CEO of DayOne. “Our approach is to secure the critical resources – including power, land, water, and connectivity – early, so we can execute with speed while building responsibly for the long term.”
DayOne and Sembcorp will evaluate onsite power, renewable supply, fuel storage, and operations services. The framework may support several projects across Asia. It also fits DayOne’s target to use 100% renewable energy by 2030, where markets allow.
The wider message is clear. Data center growth now depends on energy strategy, not only land and connectivity. For telecom and IT players, power sourcing has become a core infrastructure decision. The next expansion wave may favor operators that solve energy early.
