Keppel Data Centres sells shares in KDC Singapore 4
Wed 19 Jul 2017
Keppel Data Centres (KDC) has entered into a new share purchase agreement with Thorium DC, a joint venture company between the Alpha Data Centre Fund and KDC, for the transfer of the total share capital of Keppel’s Singapore 4 facility (KDC SGP 4).
According to a media release, the transfer is set for a consideration of approximately $170 million, and Alpha DC will now hold a 70% stake in the SGP 4 data centre.
KDC is a joint venture between Keppel Telecommunications and Transportation (Keppel T&T) and Keppel Land Limited. Following the transaction, Keppel T&T will hold onto an effective interest of just over 40.7% in KDC SGP 4, through KDC’s respective stakes in Thorium and the Alpha DC Fund.
The addition of SGP 4 to the Alpha Fund follows the completion of the fund’s first acquisition, Keppel DC Frankfurt 1 in Germany in December last year.
KDC SGP 4 is located within close proximity to two other KDC data centres in Tampines – Keppel DC Singapore 2 and 3. The facility features over 180,000 sq.ft. of gross floor space spread over five floors.
The carrier-neutral centre includes environmentally-friendly design and construction features and has received two green certifications this year.
The data centre market in Singapore is expected to remain strong over the coming years, supported by increasing demand from evolving technologies, such as cloud computing and Smart City initiatives, and the growing number of companies looking towards digital transformation.
The Southeast Asian market as a whole is set to grow at an accelerated rate as cloud adoption is forecasted to reach up to 70% of enterprises in the region.
Singapore is a particularly popular destination for companies looking for colocation services in the region, thanks to its advanced infrastructure and high connectivity levels.
In June, Google announced that it had launched a new Google Cloud Platform (GCP) region in Singapore to capitalise on the booming digital market. Known as southeast-asia1, the new region followed a 100% increase in paid GCP customers in Singapore over the last year.