Keppel launches second data centre fund with US$500m first close

Keppel launches second data centre fund with US$500m first close

Keppel Capital, the asset management arm of Keppel Corporation, has launched second data centre fund, Keppel Data Centre Fund II (KDC Fund II), which will focus on making strategic investments in the fast-growing data centre sector in Asia Pacific and Europe.

With a target fund size of US$1 billion, Keppel Data Centre Fund II (KDC Fund II) has attracted initial capital commitments from various financial institutional investors and achieved a first close of more than US$500 million. KDC Fund II is managed by Alpha Investment Partners Limited (Alpha), a private fund manager under Keppel Capital.

“The COVID-19 pandemic has accelerated the pace of digitalisation for many businesses and governments alike and further spurred the growth of the data centre sector. Riding on this growth, Keppel Data Centre Fund II will continue to leverage the Keppel Group’s expertise and network to seize opportunities in this burgeoning sector and connect our investors with quality investments,” said Alvin Mah, CEO of Alpha.

“In line with Keppel’s Vision 2030, which puts sustainability at the core of the Group’s strategy, KDC Fund II will, wherever possible, tap on the Keppel Group’s know-how in sustainable technology and energy-efficiency to develop greener data centres. This will set us apart from others, especially when hyperscalers are increasingly embedding sustainability as part of their operations.” 

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“Keppel Data Centres has been innovating and is at the forefront of incorporating sustainability in the development and operation of data centres. We are collaborating with industry leaders to explore how the carbon footprint of data centres can be reduced, including through the development of floating data centre parks, tapping cold energy released from LNG re-gasification for cooling, hydrogen infrastructure for power generation, and accelerating the adoption of renewable energy as well as the development of carbon capture, utilisation and sequestration (CCUS) systems,” said Wong Wai Meng, CEO of Keppel Data Centres.

In addition, KDC Fund II and Keppel Data Centres will tap on the expertise of other business units in the Group, such as Keppel Infrastructure and Keppel Renewable Energy, in aspects such as cooling and use of renewable energy to enhance its data centre solutions. 

Keppel Capital’s first data centre fund, Alpha Data Centre Fund, was launched in 2016. Today, its portfolio spans over 1.38 million sq ft of gross floor area and has investments in key economic hubs, such as Singapore, Malaysia, Indonesia, Germany, Australia, and China.