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Keppel launches second data centre fund, achieves first closing of over US$500 mil

Felicia Tan
Felicia Tan12/16/2020 08:04 AM GMT+08  • 2 min read
Keppel launches second data centre fund, achieves first closing of over US$500 mil
The fund has a targeted size of US$1 billion ($1.33 billion).
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Keppel Capital, on Dec 16, announced that it has launched Keppel Data Centre Fund II (KDC Fund II).

The fund, which follows the success of its first data centre fund, will focus on making strategic investments in the fast-growing data centre in Asia Pacific and Europe.

The fund has a targeted size of US$1 billion ($1.33 billion) and has already attracted initial capital commitments of over US$500 million at first close.

KDC Fund II is managed by Alpha Investment Partners, a private fund manager under Keppel Capital.

The fund will tap into Keppel Data Centres Holdings’ expertise in developing, operating and maintaining quality data centres to capture investment opportunities in greenfield and brownfield data centre assets.

SEE:PhillipCapital initiates coverage on Keppel Corporation at 'buy' with TP of $6.12 on potential re-rating

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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.

“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,” says Alvin Mah, CEO of Alpha.

“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,” adds Wong Wai Meng, CEO of Keppel Data Centres.

Shares in Keppel closed flat at $5.29 on Dec 15.

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