Singapore’s Keppel aims to expand data centre capacity, FUM amid AI boom

Singapore’s Keppel said on Thursday it plans to more than double its data centre funds under management and expand its capacity, as the firm tries to tap into the artificial intelligence frenzy, driving digital infrastructure investment.

Keppel said it aims to more than double its data centre FUM, from the current S$9 billion ($6.80 billion) to S$19 billion in the near-term.
It aims to expand its data centre portfolio to 1.2 gigawatt (GW) gross power capacity in the near term from current 650 megawatt (MW) capacity.

The growing adoption of artificial intelligence by firms to streamline operations has led to a hike in demand for digital infrastructure required to support the development of AI technologies.

The Asia-Pacific region has seen a rise in data centre investments in recent times with Blackstone-led consortium acquiring larger data centre group AirTrunk for $16 billion in early September.

Keppel already have access to power, technological understanding, strong customer relationships with hyperscalers – large-scale computing service providers – as well as multiple pools of capital to expand its data centre power capacity.

The company has a portfolio of 35 data centres across key data hubs in Asia-Pacific and Europe, and is also involved in digital infrastructure projects such as the Bifrost Cable System, a subsea cable system directly connecting Singapore to the west coast of North America.

Separately, the global asset manager reported a largely unchanged underlying net profit for the nine months ended Sept. 30 compared with last year.

Its recurring income jumped 14% from last year, underpinned by higher contributions from both asset management and operating income.

Keppel said its infrastructure division aims to double its energy supply to 3.0 GW by 2030 and expand its cooling business.