Keppel Ltd, a global asset manager and operator, through its private fund Keppel Data Centre Fund III (KDCF III), has secured land for the development of a 60MW data center in Ansan, located in South Korea’s Seoul Metropolitan Area (SMA). Under the transaction, KDCF III will acquire an approximately 73 percent effective stake in a special purpose vehicle that owns the site.
According to a company press release, the project marks Keppel’s entry into South Korea’s data center market. The site has already obtained construction permits and power approvals and the facility is scheduled for operation by 2030 to support artificial intelligence workloads. It is intended for Tier III-equivalent specifications to serve hyperscalers, cloud service providers and corporate customers.
Keppel’s funds under its Connectivity segment including KDCF III, amounted to S$13 billion (US$ 10 billion) as of the end of 2025. This transaction is not expected to have a material impact on its net tangible assets per share or earnings per share for the current financial year.
Manjot Singh Mann, CEO of Connectivity Division, Keppel, said, “South Korea represents a compelling growth market for digital infrastructure, underpinned by strong demand from cloud service providers and hyperscalers, alongside limited new supply in the SMA to deliver scalable, high-quality and AI-ready infrastructure solutions that meet the evolving needs of our customers.”
Lee Hui Fang, CIO, Keppel, said, “South Korea is one of Asia’s most exciting data center investment markets, and this project positions Keppel at the heart of it. The convergence of burgeoning AI workloads and a power-constrained market in SMA creates a compelling entry point for Keppel.”
The Ansan development will become part of Keppel’s data center portfolio, which comprises 39 facilities with gross power capacity exceeding 800MW as of the end of 2025. The project is the second investment by KDCF III, whose funds under management stood at approximately S$2.7 billion (US$ 2.7 billion) at the end of 2025.
South Korea’s data center sector has expanded in recent years, driven by cloud adoption, growing AI-related demand and government efforts to develop the country’s AI industry. Keppel cited projections showing that new data center power demand in the Seoul Metropolitan Area could reach approximately 2.3GW by 2030.