Keppel DC REIT, Asia’s first pure play data center real estate investment trust, is preparing for a potential redevelopment of its Keppel DC Singapore 1 (KDC SGP 1) data centre to cater for strong demand from hyperscalers, according to the REIT management.
“For the KDC SGP 1, we are making preparations for a potential redevelopment of the asset,” Loh Hwee Long, CEO of Keppel DC REIT Management Pte. Ltd. reportedly said during an earnings call yesterday.
“Hyperscalers remain a key focus for us, given their strong credit profiles and sustained demand for data centre capacity,” said Charmaine Cai, head of portfolio management at Keppel DC Reit.
The REIT’s biggest client, an unnamed hyperscaler, contributed 43.5 per cent of the portfolio’s rental income. Half of the group’s top 10 clients are hyperscalers.
Originally built in the 1990s, KDC SGP 1 is a six-storey data center occupying 225,956 square feet. With falling occupancy rate which stood at 46.5 per cent as at H1 2026, compared to the portfolio’s average of 92.5 per cent, the REIT will gradually vacate the premises to make way for the potential redevelopment. There are currently 15 clients occupying the premises contributing to gross revenue of S$16.5 million.
Keppel DC REIT recorded Distributable Income of S$150.7 million for 1H 2026, representing an 18.5 per cent increase year-on-year, according to the REIT’s press release. It added that growth was driven by contributions from positive reversions and escalations secured in prior periods, as well as acquisitions of Tokyo Data Centre 3 and the remaining interests in Keppel DC Singapore 3 and 4. The statement added that the REIT has secured new and renewal contracts at Gore Hill Data Centre at strong rates, which will contribute from 2H 2026 onwards.
CEO Loh said, “Keppel DC REIT delivered higher earnings in 1H 2026, underpinned by organic drivers and acquisitions. Keppel DC REIT is uniquely positioned through its strong Singapore footprint and significant colocation portfolio, which allows us to capture organic growth opportunities. Looking ahead, we remain focused on pursuing initiatives to unlock additional value from our existing portfolio, while maintaining a disciplined approach towards accretive acquisitions that will enhance portfolio quality and support long-term growth.”
For the first time, the REIT manager is disclosing the portfolio’s contracted power capacity of about 95 per cent. “This means that about 95 per cent of our power capacity is revenue generating, as revenue is more closely tied to contracted power capacity than net lettable area. We believe this provides a more meaningful measure of utilisation than traditional occupancy metrics,” Loh reportedly said.