Keppel Data Centres has announced their expansion plans to enter the data center market in China.
The Singapore-based data center provider’s private equity fund, Alpha DC Fund, will acquire and develop a high specification data center in Huizhou’s Tonghu Smart City.
“Demand for quality data centers has been increasing rapidly with the expansion of the digital economy globally,” said Mr. Alvin Mah, the CEO of Alpha DC Fund.
The Fund entered into an agreement through its subsidiary Alpha Investment Partners to acquire Huizhou Bike for US$214 million. Huizhou Bike, a subsidiary of Country Garden Holdings, originally had plans on developing the greenfield data center in Tonghu Smart City.
Country Garden, one of China’s leading property developers, will work with Keppel Data Centres to construct the core and shell of the data center in the park owned by Country Garden.
“This collaboration will allow us to deliver a safe, reliable and high specification data centre facility for customers in the Greater Bay Area,” said Mr. Wong Wai Meng, the CEO of Keppel Data Centres.
For Alpha DC Fund’s first asset in China, the data center will fit more than 6,000 high-density racks, cover 487,000sq ft, and meet China Data Centre Class A GB-standard equivalent specifications.
The facility will be developed over two stages to be completed in 2021 and 2022. And Keppel suggests the data center can expand to another 538,200sq ft to reach more than one million square feet in total.
Upon completion, Keppel Data Centres will work with Shenzhen Huateng Smart Technology to operate the data center.
“The project will contribute to the upgrading of information infrastructure and economic development in Huizhou,” added Mr. Wai Meng.
The development is said to be strategically aligned with the Chinese Government’s New Infrastructure campaign, focusing on information-based and innovative infrastructure.
The country is expected to invest more than $3.5 trillion in construction over the next five years, according to Haitong Securities.