Singapore's Keppel to buy Japanese AI data centre amid AI boom (updated)

Mitsui Fudosan Co

05/11/2024 10:56

(Updates with further background and details from paragraph 2
onwards)
       Nov 5 (Reuters) - Singapore's Keppel  KPLM.SI  said on
Tuesday it has agreed to buy an artificial intelligence-ready
data centre facility being developed by Japan's biggest property
group Mitsui Fudosan  8801.T  in Tokyo.
    The deal comes less than two weeks after the asset manager
said it plans to more than double its data centre funds under
management from S$9 billion ($6.84 billion) currently to S$19
billion in the near term to tap into the AI frenzy.
    Mitsui Fudosan will develop the core and shell of the data
centre, while Keppel's private fund will undertake the fit-out
works, the Singaporean company said.
    Keppel said it would be the facility manager when the data
centre is ready in 2027, adding to its recurring income.
    "We look forward to working even closer with Mitsui Fudosan
... to further develop a quality pipeline of assets for our
upcoming Keppel Data Centre Fund III," said Christina Tan,
Keppel's chief investment officer and CEO of fund management.
    The company did not immediately respond to an email from
Reuters requesting to disclose the value of the deal.
 
 ($1 = 1.3167 Singapore dollars)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Shilpi
Majumdar)
 ((Shivangi.Lahiri@thomsonreuters.com))