Keppel’s second data center fund closes more than $500 million

Singapore-based Keppel Capital Holdings has launched its second data center fund for investments in Asia and Europe.

With a target investment size of $1 billion, the Keppel Data Center (KDC) Fund II has already raised initial capital investments of more than $500 million.

KDC Fund II will be managed by its subsidiary Alpha Investment Partners who will leverage the expertise of Keppel Data Centres to capture investment opportunities in greenfield and brownfield data centre assets.

Sustainability at the core of everything

Alvin Mah, CEO of Alpha Investment Partners, says that the fund will leverage Keppel’s expertise on sustainable technology, and energy efficiency to develop greener data centers.

“The COVID-19 pandemic has accelerated the pace of digitalisation for many businesses and governments alike and further spurred the growth of the data center sector,” said Mr. Mah. 

This will be in line with Keppel’s Vision 2030, a corporate goal that puts sustainability at the core of the company’s strategy.

Wong Wai Meng, CEO of Keppel Data Centers, said that the company is collaborating with industry leaders to explore ways to build and maintain more eco-friendly data centers.

This includes the development of floating data centre parks, tapping cold energy released from LNG re-gasification for cooling, hydrogen infrastructure for power generation, and accelerating the adoption of renewable energy as well as the development of carbon capture, utilisation and sequestration (CCUS) systems.

Keppel’s first data center fund, the Alpha Data Center Fund, was launched in 2016, and has since has a portfolio of investments in Singapore, Malaysia, Indonesia, China, Australia, and Germany, which spans 1.38 million square feet of floor area.