Temasek Targets 15% AI Portfolio Share by 2031, Doubling Down on Data Centres
Source: W.Media
Temasek plans to more than double AI exposure to 15% of portfolio by 2031, targeting data centres, semiconductors, and foundation models as Singapore's sovereign fund bets big on AI.
Temasek Holdings plans to more than double its exposure to artificial intelligence to as much as 15 per cent of its portfolio by March 2031, up from 6 per cent currently, as Singapore's sovereign wealth fund places its biggest strategic bet yet on AI infrastructure and applications.
The fund will focus capital across the full AI value chain: energy and data centres, semiconductors, cloud services providers, foundation models, and AI applications and software infrastructure. Temasek has already invested in leading foundation model developers Anthropic and OpenAI this year through its newly restructured investment arm, Temasek Global Investments (TGI), and holds positions in Elon Musk's SpaceX.
Alongside the AI push, Temasek plans to quintuple its investment in ageing infrastructure modernisation, renewable and nuclear energy, energy storage, and breakthrough decarbonisation technologies from 1 per cent to 5 per cent of portfolio value by 2031. These parallel investments are driven by surging electricity demand from AI data centres and broader electrification efforts across the global economy.
Temasek chief executive Dilhan Pillay said generative AI is reshaping business models and the nature of work itself, bringing both opportunities and risks. The fund has invested S$51 billion and divested S$31 billion in the year to March 2026, resulting in a net investment of S$20 billion. Its net portfolio value stood at S$518 billion as of March 2026, up S$49 billion year-on-year.
Why it matters for Singapore: Temasek's AI portfolio target is one of the most concrete signals yet that Singapore's state capital is treating AI as a generational investment theme rather than a tactical allocation. By funnelling billions into data centre energy, semiconductor capacity, and foundation model developers, Temasek is effectively building the infrastructure layer for Singapore's AI ambitions. The restructuring into three entities — TGI, Temasek Singapore (TSG), and Temasek Partnership Solutions (TPS) — also signals a more aggressive, conviction-driven deployment strategy that could reshape the competitive landscape for AI investment across the region.