Singtel tells shareholders it supports potential listing of its data centre business in India

Singtel tells shareholders it supports potential listing of its data centre business in IndiaSign up now: Get ST's newsletters delivered to your inboxSingtel was responding to questions from shareholders and the Securities Investors Association (Singapore) ahead of its annual general meeting on July 29. ST PHOTO: KUA CHEE SIONGBenjamin LimPublished Jul 24, 2026, 06:50 PMUpdated Jul 24, 2026, 06:53 PMSet as preferred sourceListenSummariseSingtel supports a potential listing of its Indian data centre business to fund expansion and views its 25% stake in ST Telemedia Global Data Centres as a strategic investment.Singtel expects growth in its Nxera data centre earnings by FY 2027, aiming for EBITDA over $300 million by 2028, while addressing environmental and resource concerns over data centre developments responsibly.

The telco maintains a dynamic $9 billion asset recycling target, continues its $2 billion share buyback to enhance EPS, and uses its performance share plan without diluting shareholder value.AI generatedSINGAPORE - Singtel said it is “supportive” of a potential listing of its data centre business in India to fund further expansion of its digital infrastructure business.The telco was responding to questions from shareholders and the Securities Investors Association (Singapore), or SIAS, ahead of its annual general meeting on July 29.

In a filing with the Singapore Exchange on July 24, Singtel also answered questions on its capital management strategy and other matters.In response to a question on the strategy and potential returns from Singtel’s 25 per cent stake in ST Telemedia Global Data Centres (STT GDC), the telco said it views the data centre giant as a strategic investment rather than a passive financial holding, and its minority stake is a “strategic choice”.Singtel’s data centres in India are part of the STT GDC business, which the telco acquired as part of a consortium with global investment firm KKR for $13.

8 billion in February. The transaction is expected to close in early part of the second half of 2026.By investing in STT GDC, Singtel gains exposure to the digital infrastructure sector both regionally and globally.

As the investment will be equity-accounted, Singtel can benefit from STT GDC’s growth without including the company’s debt or financial results in its own consolidated accounts, it said.Singtel added that this structure limits the impact on its earnings per share while retaining its growth potential, and also allows the telco to execute strategic actions in the future as the data centre sector continues to evolve.This could entail a potential listing of STT GDC’s India business, which Singtel said would capitalise on “strong public market demand” for digital infrastructure and increase its valuation.

On its subsidiary Digital InfraCo’s data centre business Nxera, Singtel said it expects earnings to continue growing in financial year (FY) 2027 as its data centre in Tuas ramps up, with customers progressively commencing operations.This will support the continuous growth of Nxera’s earnings before interest, taxes, depreciation and amortisation (EBITDA) to more than $300 million by the end of 2028.A question was raised about Singtel’s ability to mitigate environmental damage, water scarcity and pressure on power supplies, among other adverse effects, as its pursues data centre growth.

Singtel replied that its recognises the concerns that have been raised globally around the impact of data centres on electricity networks, water resources and local communities.“These are important issues that must be addressed, and we believe the long-term success of AI infrastructure depends on ensuring that people benefit from its development, not simply from the digital services it enables.”The telco will work with governments, utilities and local partners from the earliest stages of development to identify the most appropriate energy and water solutions for each project, ensuring they align with local infrastructure plans and community needs.

It will also seek opportunities to invest in dedicated and lower-carbon energy solutions that complement existing energy infrastructure, expand overall system capacity and improve resilience.Singtel’s capital management strategySingtel also fielded questions on its capital management strategy.A shareholder asked how the telco determined its medium-term asset recycling target of $9 billion, and whether it would make adjustments according to changes in market conditions.

Singtel said that the asset recycling target is “dynamic rather than a fixed cap” and is already adaptable to changing conditions, as demonstrated in the telco previously raising its target from $6 billion to $9 billion in May 2025 as opportunities evolved.Its asset recycling target reflects its “continued focus on active capital management and disciplined capital allocation” and is intended to provide financial flexibility to invest in future growth opportunities while supporting sustainable s