Keppel aims to more than double data centre funds under management to $19b amid AI boom
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Keppel chief executive Loh Chin Hua sid Keppel is well-positioned to meet the rising demand for AI-ready data centres from hyperscalers.
PHOTO: BT FILE
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Bengaluru - Keppel plans to more than double its data centre funds under management (FUM) and expand its capacity, as it tries to tap into the artificial intelligence (AI) frenzy that is driving investment into digital infrastructure.
The company on Oct 24 said it aims to raise its data centre FUM from the current $9 billion to $19 billion in the near term. This will come with the upcoming Keppel Data Centre Fund III, as well as further co-investments from investors.
Keppel group chief digital officer Manjot Singh Mann said the company has plans to develop AI campuses, or AI-ready data centres, across Malaysia, India, Japan and Indonesia.
These facilities, which will be operationally ready within three to five years, will support Keppel’s goal of expanding its current data centre capacity to 1.2GW gross power capacity, from the current 650MW capacity.
“The access to multiple pools of capital, beyond Keppel’s balance sheet, will accelerate the expansion of the company’s data centre power capacity,” said the group.
The growing adoption of AI by companies to streamline operations has led to a hike in demand for digital infrastructure required to support the development of AI technologies.
“Amid rapid digitalisation, Keppel is well-positioned to meet the rising demand for AI-ready data centres from hyperscalers, with a premier portfolio of 35 data centres across the Asia-Pacific and Europe,” Keppel chief executive Loh Chin Hua said in a statement.
The Asia-Pacific region has seen a rise in data centre investments in recent times, with a Blackstone-led consortium acquiring larger data centre group AirTrunk for US$16 billion (S$21 billion) in early September.
Separately, the global asset manager reported a largely unchanged underlying net profit for the nine months ended Sept 30 compared with 2023. This was after excluding the effects of its legacy offshore and marine assets.
Keppel saw a 14 per cent growth in recurring income during this period, with higher contributions from both asset management and operating income.
For the third quarter to end-September, net profit was lower year on year, in the absence of valuation and divestment gains in the connectivity segment, the company said.
Keppel said its infrastructure division aims to double its energy supply to 3GW by 2030 and expand its cooling business.
Its shares closed 1.4 per cent, or nine cents, higher at $6.47 on Oct 24. REUTERS
Additional reporting by Timothy Goh
