Keppel Aims to Double Data Centre Funds Amid AI-Driven Demand Surge

Singapore's Keppel Corporation plans to more than double its data centre funds under management to S$19 billion, capitalizing on the growing demand for AI-ready digital infrastructure.

Keppel's Ambitious Data Centre Expansion Plan

Singapore-based Keppel Corporation has announced plans to significantly expand its data centre portfolio, aiming to capitalize on the surging demand for digital infrastructure driven by the artificial intelligence (AI) boom. The company intends to more than double its data centre funds under management (FUM) from the current S$9 billion ($6.80 billion) to S$19 billion in the near term 12.

AI-Driven Demand for Digital Infrastructure

The rapid adoption of AI technologies by companies seeking to streamline operations has led to a substantial increase in demand for the digital infrastructure necessary to support AI development. Keppel's CEO, Loh Chin Hua, emphasized the company's strategic position in this growing market, stating, "Amidst 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 Asia Pacific and Europe" 2.

Expanding Data Centre Capacity

In addition to increasing its FUM, Keppel has set an ambitious target to expand its data centre portfolio's gross power capacity. The company aims to nearly double its capacity from the current 650 megawatts to 1.2 gigawatts in the near term 2. This significant increase in power capacity underscores Keppel's commitment to meeting the growing needs of AI and other data-intensive technologies.

Financial Performance

While Keppel is making bold moves in the data centre sector, the company's overall financial performance remains stable. The global asset manager reported that its underlying net profit for the nine months ended September 30 was largely unchanged compared to the same period last year 12. This stability in financial performance, coupled with aggressive expansion plans, suggests a strategic focus on long-term growth in the digital infrastructure sector.

Market Implications

Keppel's expansion plans reflect a broader trend in the tech industry, where companies are increasingly investing in AI-ready infrastructure. As more businesses adopt AI technologies, the demand for high-capacity, efficient data centres is expected to continue growing. Keppel's move to double its data centre FUM positions the company as a significant player in this evolving market landscape.

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