How Keppel T&T will benefit from Singapore's rising data centre space demand

Demand for capacity to balloon 50% by 2015.

Citing data centre consulting firm Broadgroup, CIMB said demand for data centre capacity in Singapore is expected to grow 50% from 2.4m sf in 2010 to 3.6m sf in 2015. Keppel T&T, as one of the aggressive firms in the industry, is set to reap big time gains from this trend.

Here's more from CIMB:

Singapore’s reliable infrastructure and regulatory environment have made the country a preferred location as a data hub for the regional operations of many corporations.

Furthermore, with limited space in Singapore, more companies are outsourcing their data centres to third parties. We believe this trend is likely to continue as companies seek efficiency and higher returns on their investments.

Keppel T&T’s strong track record of running high-quality data centres and its investment in Securus Data Property Fund have enabled the company to attract an impressive portfolio of customers, ranging from banks to US multinational corporations.

Furthermore, it is a hassle to switch from one data centre provider to another due to the disruption and downtime involved in migrating back-up disks and servers so customers tend to stay with one service provider for the long haul.

We view the recent strong contributions from data centre revenues and rising occupancy rates at Keppel T&T’s two existing data centres as positive indications of customer loyalty and strong demand for the company’s data centre services in the coming years.