KEPPEL’S private fund, Keppel Data Centre Fund II (KDCF II), has entered into a joint venture (JV) with digital infrastructure company Digital Decarbonization Solutions Platform (DDSP) to build an 80-megawatt (MW) greenfield data centre campus in northern Taiwan.
Keppel on Monday (Oct 21) said that KDCF II will hold a 50 per cent interest in the JV, with DDSP holding the balance.
The campus will be built in two phases, with the first building expected to be ready for service in 2026 and leased to a “leading global cloud service provider” under a long-term contract.
The second phase will “position Keppel to capture further upside from the opportunities in Taiwan’s growing data centre market”, the company noted.
It added that the deal marks its first data centre project in Taiwan, and is meant to “ride on the tailwinds of Taiwan’s artificial intelligence and semiconductor boom”.
Keppel noted that the Taiwan data centre market clocked a utilisation rate of 94.3 per cent in 2023. It expects demand and supply to grow at estimated compound annual growth rates of 10.6 per cent and 10.1 per cent, respectively, from 2023 to 2028.
The company also said that as KDCF II has committed more than 90 per cent of its total funds, it is planning to launch the third vintage of its flagship data centre fund series later this year.
It pointed out that the upcoming Keppel Data Centre Fund III “and co-investments from other investors could translate into funds under management of S$10 billion”
Keppel shares closed down 0.3 per cent or S$0.02 at S$6.45 on Monday, before the announcement.
