economy
Singapore's Singtel to boost spending as telecom major eyes AI services, data center expansion
Southeast Asia's largest telecom operator plans to spend around S$3 billion in its current fiscal year to boost investments in AI and data centers.
TL;DR
- Singtel is increasing its capital expenditure to S$3 billion for the current fiscal year, up from S$2.5 billion.
- Approximately S$1.2 billion will be invested in data centers and AI, including GPU as a service and sovereign AI for Singapore.
- The company reported a 40% increase in net profit to S$5.61 billion for the year ended March, boosted by S$2.84 billion in one-off gains from a stake sale in Bharti Airtel.
- Singtel sees substantial potential in the Indian market and aims to equalize stakes with its local partner, Sunil Bharti Mittal, in Airtel over the long term.
- The company anticipates minimal direct impact from the Middle East conflict but acknowledges potential secondary effects like inflation and slower economic growth.
- Core capital expenditure is expected to remain stable at around S$1.8 billion, with significant allocations for its Australian associate Optus.