Keppel Launches 2nd Data Center Fund wit $1B Target Fund Size

Building on the “success” of its first data center fund, Keppel Capital Holdings has launched Keppel Data Centre Fund II (KDC Fund II). The new fund is focused on making strategic investments in the fast-growing data center sector in Asia Pacific and Europe.

“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, Chief Executive Officer (CEO) of Alpha.

With a target fund size of $1 billion, KDC Fund II has attracted initial capital commitments from various financial institutional investors and achieved a first close of more than $500 million.

KDC Fund II is managed by Alpha Investment Partners Limited (Alpha), a private fund manager under Keppel Capital. KDC Fund II will also leverage Keppel Data Centres’ expertise in developing, operating and maintaining quality data centers to capture investment opportunities in greenfield and brownfield data center assets.

“The COVID-19 pandemic has accelerated the pace of digitalization for many businesses and governments alike and further spurred the growth of the data center sector,” said Alvin Mah, Chief Executive Officer (CEO) of Alpha. “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.”

“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 centers,” added Mr. Mah. “This will set us apart from others, especially when hyperscalers are increasingly embedding sustainability as part of their operations.”

Reducing Data Center Carbon Footprint

“Keppel Data Centres has been innovating and is at the forefront of incorporating sustainability in the development and operation of data centers,” said Wong Wai Meng, Chief Executive Officer (CEO) of Keppel Data Centres. “We are collaborating with industry leaders to explore how the carbon footprint of data centers can be reduced, including through the development of floating data center 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, utilization and sequestration (CCUS) systems.”

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 center solutions.

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