Keppel Data Centres to build 4th facility in Singapore

Keppel Data Centres on Thursday (Jul 23) announced it will be developing its fourth data centre in the Republic, which will be located close to the company’s other data centres in Tampines.

The company signed a conditional agreement to acquire a light industrial building, via its wholly-owned subsidiary Keppel Datahub 3, for a purchase consideration of S$20 million, according to the press release by Keppel Corporation.

The new facility will be developed to Tier III, carrier-neutral specifications and will come with “robust” security systems, it said. Keppel Data Centres is a joint venture between Keppel Land and Keppel Telecommunications and Transportation (Keppel T&T).

The first phase of construction is expected to be completed by 2016 and, when fully completed, will feature approximately 183,000 square foot of Gross Foot Area, making it the company’s second-largest data centre here after Keppel Digihub, it added.

Mr Thomas Pang, CEO of Keppel T&T, said in the press release: “Data centre utilisation rates in Singapore have been consistently high, reflecting the country’s status as a data centre hub in the region. This demand is expected to grow, led by the outsourced data centre requirements of multinational companies, banks and financial institutions.”

Citing data from BroadGroup, the press release said data centre utilisation rates in Singapore have remained steady at close to 85.5 per cent. It is estimated that increased demand from financial institutions will further push utilisation rates to 92.1 per cent by 2018, it added.

The acquisition is not expected to have material impact on the net tangible assets or earnings per share of Keppel T&T for the current financial year, the press release said.

Source : Channel NewsAsia – 23 Jul 2015

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