Asset manager and operator Keppel Ltd. (Keppel) has achieved a first close for its third data centre fund, KDCF III, raising approximately US$ 580 million (S$786 million) in initial capital commitments from various global institutional investors. This is part of the S$ 2.0 billion of overall capital commitments for its Keppel Data Centre Fund III (KDCF III), Keppel Education Asset Fund II (KEAF II) and Sustainable Urban Renewal (SUR) strategy, representing approximately S$4.9 billion in Funds under Management (FUM).
“The securing of about S$ 2.0 billion in capital across Keppel’s flagship funds reflects the resilient demand for high-quality alternative real assets anchored to macrotrends such as climate change and energy transition, urbanisation as well as rapid digitalisation and the AI wave. This significant milestone brings us closer to our interim FUM target of S$100 billion by 2026, with ambitions to reach S$200 billion by 2030,” said Christina Tan, CEO of Fund Management and Chief Investment Officer.
KDCF III will draw on Keppel’s deep expertise in developing and operating data centres to invest in a portfolio of sustainable, best-in-class data centres in the Asia Pacific region. To mitigate portfolio leasing risk for investors, KDCF III will focus on securing pre-commitment or high leasing certainty from hyperscale customers.
As part of Keppel’s integrated ecosystem, the fund will benefit from synergies across Keppel’s operating divisions, such as the sourcing of renewable energy and advanced cooling infrastructure. KDCF III will also be able to tap on Keppel’s strong customer relationships with hyperscalers to access off-market opportunities, as well as Keppel’s proprietary assets.
