Keppel T&T and Keppel Land join forces to boost data centre business

Keppel Telecommunications & Transportation Ltd (Keppel T&T) and Keppel Land Limited (Keppel Land) have formed a joint venture company to consolidate their data centre assets and position the business for further growth.

The joint venture company, Keppel Data Centres Holding Pte Ltd (JV Co), is 70%:30% indirectly held by Keppel T&T and Keppel Land respectively with an initial committed capital of $30 million injected by the two shareholders in proportion to their shareholding percentages, according to a Keppel report.

The JV Co has today also acquired two data centre assets, Keppel Datahub and Keppel Digihub, currently owned by Keppel T&T and Keppel Land respectively. Both data centres are carrier-neutral and Tier 3+ facilities, which offer one of the highest levels of reliability and network availability in the industry.

Mr Pang Hee Hon, CEO of Keppel T&T said, "Leveraging our synergy with sister company, Keppel Land, we continue to expand our data centre business which is core to Keppel T&T's growth story.

"By consolidating our resources of manpower, processes and systems, we can potentially enjoy greater economies of scale and provide our customers with better and more cost-efficient solutions. Management of our data centres under one entity also allows us to provide stronger business continuity and disaster recovery (BCDR) services to customers who wish to house their BCDR facilities in different locations.

"Together with Keppel T&T's involvement in the Securus Data Property Fund, the JV Co will enhance our market position in the fast growing data centre sector."

The JV Co will own, manage, and operate data centres and disaster recovery centres or invest in companies engaged in similar businesses. Following the acquisitions of the two data centres, the JV Co has more than 150,000 square feet of data centre and BCDR space. Collectively, the JV Co will serve an existing range of blue chip clients, and be well positioned to capture more opportunities as a significant wholesale co-location provider.