Singapore-headquartered DayOne has secured a four-year, S$530 million (US$415.73 million) green loan from DBS, OCBC and UOB to develop the 20-megawatt (MW) facility in western Singapore, the company said in a statement.
The project is expected to become Singapore’s first data centre to house solid oxide fuel cells (SOFCs) that generate electricity on site, reducing its reliance on grid-supplied power.
The technology will be deployed as part of a proof of concept exploring hydrogen-based energy solutions, rather than as a confirmed fully hydrogen-powered system. Hydrogen-based energy solutions may use hydrogen alongside other energy sources, while a fully hydrogen-powered system relies entirely on hydrogen for its energy needs.
“Solid oxide fuel cells provide an alternative way to generate electricity. They are particularly effective in Singapore, where they could create more opportunities for power-constrained data centres to run on a continuous stream of dependable power, with lower emissions,” said Deven Chhaya, partner for infrastructure advisory at KPMG in Singapore.
His assessment suggests the project could test whether fuel cells can provide the reliable, lower-emission electricity needed to support further data centre development in a market with limited power availability.
Solid oxide fuel cells generate electricity electrochemically at high temperatures, creating an opportunity to establish a heat network. Waste heat from the data centre could be channelled to the fuel cells, improving their performance and increasing overall system efficiency.
The trial comes as the rapid adoption of AI cloud computing and 5G drives demand for new data centres. Such facilities require dependable electricity around the clock to operate servers and cooling equipment, while AI workloads can create rapidly changing power requirements.
Han Kwee Juan, group head of institutional banking at DBS, said rising demand for digital infrastructure was increasing both electricity consumption and the need for more efficient facilities.
“Demand for digital infrastructure is accelerating as AI and cloud computing continue to reshape economies across Asia. This is driving an increase in energy consumption and the need for more energy-efficient infrastructure,” Han said.
Hydrogen could eventually help provide stable power when renewable sources such as solar are unavailable, according to Chhaya. Renewable electricity could be used to produce hydrogen, which could then store energy for later use in fuel cells.
However, the technology faces financial and environmental hurdles. Hydrogen-based electricity has generally been expensive, while its emissions depend heavily on how the hydrogen is produced.
“Hydrogen-based power has typically been a challenge in terms of financial feasibility. However, hydrogen is set to play a greater role amid rising demand for stable, low-emission power sources. Hydrogen systems will need to be coupled with the likes of solid oxide fuel cells to deliver at scale,” Chhaya said.
“Recently, hydrogen has been viewed as a storage or staging fuel, where production could be enabled through renewable but intermittent sources like solar, and later consumed in combination with solid oxide fuel cells.
“The environmental impact of hydrogen production and consumption, in this context, is likely to generate continuous power at relatively low emissions.”
DayOne did not disclose what fuel would initially be used in the cells, when hydrogen might be introduced, how it would be produced or what share of the data centre’s electricity the system would supply.
Chhaya also said fuel cells and hydrogen would not constitute a standalone solution for AI data centres, whose power demand can vary considerably.
“Data centre loads vary greatly. The above technologies, coupled with grid stabilising technology, must work in tandem to address the unique power demands of AI data centres,” he said.
“The model that is most likely to work is a combination of variable renewable energy, suitable storage like batteries or active generation like hydrogen and solid oxide fuel cells, as well as virtual power plants that enable power to be distributed effectively.”
Future AI data centres would also need isolation and protection systems to prevent their changing power demands from causing large-scale grid imbalances, Chhaya added.
DayOne said its facility would incorporate vertical building-integrated solar panels and hybrid air and liquid cooling technologies to improve energy efficiency. Construction began in July 2025, and the data centre is expected to become operational by the first quarter of 2027.
The project received provisional Green Mark Platinum certification in December 2025, the highest rating awarded by Singapore’s Building and Construction Authority under its Green Mark scheme for data centres.
Elaine Lam, head of global corporate banking at OCBC, described the integration of hydrogen power as an important step in the development of more sustainable digital infrastructure.
“As demand for digital services and connectivity continues to grow, innovative energy solutions will play an increasingly important role in supporting this growth sustainably,” Lam said.
DBS, OCBC and UOB are acting as joint mandated lead arrangers, bookrunners and green loan coordinators. DBS is also serving as the facility and security agent. DayOne said the financing was structured in accordance with internationally recognised Green Loan Principles.
Established in 2022, DayOne operates across Asia and Europe, with a presence in Singapore, Malaysia, Indonesia, Thailand, Japan, Hong Kong, Finland and Spain.
