Subsidiaries of Keppel Corporation and Singapore Press Holdings (SPH) have agreed to develop and operate data centers at Genting Lane in Singapore.

A joint venture company known as Memphis 1 was incorporated between TPM, a subsidiary of Singapore Press Holdings, and Keppel Data Centres’ subsidiaries, Keppel Griffin and Geras DC.

Memphis 1 is set to acquire a leasehold interest at 82 Genting Lane for S$50 million to develop and run data center facilities on the land. The sale is expected to be completed on July 17.

Keppel Griffin and Geras DC will hold a 60% share in Memphis 1, while TMP will hold 40% of the shares. The joint venture company will be an indirect subsidiary of Keppel Corporation.

The subsidiaries of Keppel Data Centres will contribute up to S$209 million, including S$2.1 million for the subscription price of their 60% share as well as S$34.5 million in bonds.

TPM will contribute approximately S$139.6 million, with S$1.39 million for their 40% stake, along with S$23 million in bonds.

These amounts will be paid progressively by way of debt securities, issued by Memphis 1 from time to time. The balance amount will be subscribed to nominees of Keppel Data Centres’ subsidiaries as the data center development progresses.

Upon completion, the data center will add to Keppel Data Centres growing list of more than 20 data centers owned and operated by the company.

The data center provider also recently entered into a partnership with Mitsubishi Heavy Industries to explore hydrogen-powered tri-generation plant concepts that could sustainably power data centers, including their proposed Floating Data Centre Park project.