Keppel Corporation has announced plans to significantly expand its data center operations across Asia, nearly doubling its capacity within the next three to five years. The company aims to increase its total data center capacity to 1.2 gigawatts, up from the current 650 megawatts.
Nikkei Asia reported that CEO Loh Chin Hua revealed the expansion plans at a press conference on Thursday. He stated that the company intends to lease the new data centers to major cloud service providers, as demand for data center facilities continues to surge due to the growing computational needs of artificial intelligence.
Keppel has already initiated the development of a data center in western Tokyo and has announced plans to build an 80 MW data center campus in northern Taiwan in partnership with a Luxembourg digital infrastructure developer. The first building in Taiwan is expected to be operational by 2026. This move aims to capitalize on Taiwan’s burgeoning AI and semiconductor industry, which has been driving strong demand for data center capacity.
To further expand its footprint, Keppel will leverage Aermont Capital, a real estate manager it acquired, to explore opportunities in Europe. Additionally, the company plans to more than double its data center investment funds under management to 19 billion Singapore dollars ($14.5 billion) within the next five years.