Singapore, September 4, 2025 — Singapore’s Singtel is firmly positioning itself as a cornerstone for sovereign AI infrastructure across Southeast Asia, backed by strong operational tailwinds and expansive growth in digital infrastructure.
Maybank Investment Banking analysts have reaffirmed a “Buy” rating on Singtel, boosting its sum-of-the-parts target price by 11% to SGD 4.75. They cite three primary growth catalysts:
- Optus Recovery in Australia – Improvements in pricing discipline, operational cost optimization, and strategic network sharing have narrowed Optus’s margin gap and fuelled projected compound annual free cash flow growth exceeding 100% through FY2028.
- Mobile Market Consolidation in Singapore – With rationalization on the horizon, Singtel stands to benefit as the dominant operator in what has been a fiercely competitive market.
- Digital Infrastructure via Nxera – Singtel’s digital infra arm, Nxera, is building out a regional AI-ready data center network, featuring high-density GPU racks, sovereign data-compliance architecture, and an evolving GPU-as-a-service (GPUaaS) model.
Nxera’s pipeline includes the 58MW Tuas data center—set to come online in early 2026—already pre-sold over 50%, a high-speed facility in Thailand at 80% pre-sold, and upcoming sites in Johor and Batam, summing to over 400MW of capacity. The infrastructure allows liquid-cooled, rack densities above 200kW, tailored for AI workloads. Singtel forecasts data center revenues to grow at a CAGR exceeding 20% through FY2028, with EBITDA expected to nearly double. GPUaaS pilot offerings have already been fully booked, with long-term contracts from sectors like pharmaceuticals and AI research underway. Maybank describes Singtel as “Asia’s first-mover in sovereign AI GPU infrastructure at scale.”
