Singapore’s Keppel Corporation is set to significantly expand its presence in the data center sector with the announcement of its agreement to acquire a state-of-the-art, artificial intelligence-ready data center facility in Tokyo. This facility is being developed by Mitsui Fudosan, Japan’s largest property group, and the acquisition is part of Keppel’s broader strategy to leverage the burgeoning demand for data services driven by advancements in artificial intelligence. The decision aligns with Keppel’s plans to increase its data center funds under management from S$9 billion (approximately $6.84 billion) to S$19 billion in the near term.
Under the terms of the agreement, Mitsui Fudosan will construct the core and shell of the data center, while Keppel’s private fund will undertake the necessary fit-out works to make the facility operational. The collaboration highlights Keppel’s commitment to partnering with leading property developers to enhance its portfolio of high-quality assets. Once completed, Keppel will take on the role of facility manager, thereby adding to its recurring income and ensuring a steady revenue stream from this investment.
Christina Tan, Keppel’s Chief Investment Officer and CEO of Fund Management, expressed enthusiasm about the partnership with Mitsui Fudosan, emphasizing the potential for developing a robust pipeline of quality assets through their collaboration. The facility, expected to be ready by 2027, is strategically positioned to meet the increasing demand for data storage and processing capabilities as companies across various sectors embrace AI technologies.
The acquisition underscores Keppel’s proactive approach to tapping into the AI boom, which has led to an exponential increase in the need for data infrastructure. As AI applications continue to proliferate, the demand for sophisticated data centers capable of supporting high-performance computing will likely grow. Keppel’s investment in this AI-ready data center positions the company favorably in a rapidly evolving market, ensuring it remains at the forefront of the digital infrastructure landscape.
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