Keppel possesses a significant competitive advantage through its integrated connectivity ecosystem, which includes not only data centre solutions, but also renewable energy, liquid cooling and subsea cable capabilities needed to support advanced data centres.

The data centre industry is witnessing unprecedented growth, fuelled by digitalisation and the surge in AI-driven data processing and storage needs. Amidst this rapidly expanding market, Keppel stands out with over two decades of operational excellence, being the pioneer behind Asia Pacific’s first pure play private data centre fund series and the region's first listed data centre REIT. 

In April 2025, Keppel announced the first close of the third vintage of its flagship Keppel Data Centre Fund series. Keppel Data Centre Fund III (Fund III) successfully raised US$580 million in initial capital from various global institutional investors such as pension funds, sovereign wealth funds and asset managers.

Lee Hui Fang, Keppel’s Deputy CIO, Data Centres, said, “Keppel’s first data centre fund, launched in 2017 with an equity size of around US$1 billion, has delivered high-teens realised returns to the satisfaction of our Limited Partners (LPs). Our second vintage of a similar size was launched at the height of COVID in 2020 and is now fully committed to projects. With Fund III, we are stepping up the game with a target to raise US$2 billion to invest in a portfolio of AI-ready hyperscale data centres across Asia Pacific."

In the past six years, Keppel’s data centre portfolio has grown about 2.7 times from 240 MW in 2018 to 650 MW in 2024 – most of these assets are located in the Asia Pacific region, as well as Europe. In the next few years, the Company aims to almost double this to 1.2 GW, harnessing investment capital from new initiatives such as Fund III and other co-investors.

Poised to capture opportunities from the accelerating digital demand in Asia Pacific, Fund III offers investors exposure to resilient assets with attractive returns, managed by an established asset manager with deep operating capabilities. On the Fund III’s geographic focus, Lee shared, “Asia Pacific is a growing data centre market and where we have a strong track record. Our focus for Fund III will continue to be in Asia Pacific, with the Singapore market as the foundation. Ultimately, we will go where the risk-adjusted returns make sense, and where we have a right to win."

 

Asia Pacific is a growing data centre market and where we have a strong track record. Our focus for Fund III will continue to be in Asia Pacific, with the Singapore market as the foundation. Ultimately, we will go where the risk-adjusted returns make sense, and where we have a right to win.

— Lee Hui Fang, Deputy CIO, Data Centres, Keppel

In developed markets such as Singapore, Japan, South Korea and Australia, the supply and demand dynamics for data centres have been particularly robust. “Our first close was supported by both new and existing investors, who appreciate Keppel’s strong track record of delivering attractive risk-adjusted returns and accessing deal flow in hard-to-access markets like Singapore and Japan,” Lee shared. 

These days, power and cooling are critical issues for data centres, going beyond just finding available land. Securing access to power, especially in power-constrained markets, gives seasoned operators like Keppel a strong advantage. As part of Keppel’s integrated ecosystem, Fund III will benefit from synergies across the Company’s operating divisions. These include the sourcing of renewable energy, deployment of the latest cooling solutions, as well as subsea cables that provide highspeed connectivity – all increasingly important to hyperscalers.

“For our data centre strategy, we have identified a substantial near-term deal flow pipeline of about S$15 billion. Being a part of Keppel’s ecosystem, we can further leverage our Connectivity Division’s strong customer relationships with hyperscalers as well as proprietary assets to access a number of unique off-market opportunities,” Lee said.

In a sector where execution capability matters as much as capital, investors are increasingly seeking partners with proven operational depth. Keppel’s track record in developing and managing complex data centre assets, supported by its integrated ecosystem and strong customer relationships, gives it a clear advantage — offering Fund III investors not just access to growth, but the confidence that comes with an experienced, disciplined asset manager and operator at the helm.