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Keppel Data Centres to build and operate data centre in Malaysia

Keppel Data Centres joins Alpha Data Centre Fund to construct and operate a new data centre in Malaysia's up-and-coming digital hub

Keppel Corporation has announced via a 26 November press release that its data centre subsidiary, Keppel Data Centres (KDC), will construct and operate a new data centre in Johor, Malaysia

The agreement with Alpha Data Centre Fund, KDC’s sister business unit, will see the development of a high-availability, build-to-suit facility in Johor which itself is considered to be an up-and-coming data and research hub for Malaysia.

While the press release did not name the customer beyond noting it is a “leading technology company”, it noted that the data centre will be fully committed by the customer.

"Enterprises have been moving to rationalise their ageing data centre infrastructure, including moving many workload requirements to the cloud. In response, major cloud service providers and technology companies are expanding rapidly outside of top tier data centre markets to cater to this demand,” said Wong Wai Meng, KDC’s CEO, in the company press release.

“Our customers in these segments recognise the value that Keppel Data Centres brings to the table when planning future IT workloads and data centre deployments. We are proud to be partners enabling our customers' regional expansion requirements."

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KDC has the option of acquiring the data centre’s indirect holding company in order to “secure a steady cash flow stream”, while the customer has the option to buy the data centre back within an agreed timeframe.

Mr Alvin Mah, Alpha Investment Partners’ CEO, added: 

"Demand for data centres has been increasing with the expansion of the digital economy and the Alpha DC Fund is pleased to be able to capitalise on such growth in the Asia-Pacific region for its investments. 

“The addition of this greenfield investment provides diversification to the fund's existing portfolio."


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