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High-End Data Centre Expansion in Singapore

By Ross O. Storey | Feb. 28, 2011
Keppel T&T plans to expand current facilities and seek further data centre assets for investment.

The current strong demand for high-end data centres services has prompted logistics and data centre specialists Keppel Telecommunications & Transportation (Keppel T&T) to plan to expand current facilities to meet the high demand.

Headquartered in Singapore, Keppel T&T is a subsidiary of Keppel Corporation Ltd, a leading mainboard listed company in Singapore with core businesses in Offshore and Marine, Property and Infrastructure.

The Keppel Group, which has business across 12 countries, has a significant stake in Singapore's third major telco MobileOne Ltd (M1).

An announcement of the results of the Company and Group for the year ended 31 December, 2010, stated that "The strong demand for high-end data centres services has seen the Group's data centres in Singapore and Ireland experiencing full occupancy in its current facilities, which are fitted out for MNC companies backed by long-term contracts".


"Operating profit improved significantly by 49 per cent to $12.4 million, due to additional contribution from the data centre business and better operating margins as a result of cost control measures," the announcement said. "Thus, the Group is aiming to expand the current facilities to meet the high demand. In addition, the Group's data centre fund continues to seek good quality data centre assets for investment".

Data centre revenue

Group revenue decreased five per cent in 2010 to $107.8 million, due mainly to the winding down of noncore businesses and lower logistics revenue in Singapore, partly offset by revenue from data centre business.

On the logistics side of the business, the Group said it "continues to experience stable warehouse occupancy and growing demand for 3PL services" and is pursuing opportunities to expand into new customer segments and warehouse locations.

"The Group is also actively looking to grow overseas, especially in China, where its port in the Pearl River Delta continues to operate at full capacity, as well as Vietnam," the results announcement said.

In its 2009 annual report, Keppel Corporation Chairman and Chairman of Mobile 1, Teo Soon Ho, said that: "With the buoyant data centre market, we have enhanced our portfolio by setting up a new data centre, Keppel Datahub, in Singapore and formed a joint venture with AEP Investment Management to establish the world's first Shariah-compliant data centre fund".

The Group's 2009 annual repot stated that "Demand for data centre space, underpinned by the increasing rate of global digitisation and tighter regulations on data storage, continued to grow. Demand for quality data centre space was also boosted by an increasing  emphasis by multi-national companies to outsource their data centre operations, and tighter financial data regulations brought about by the financial crisis".

During the year, the Division said it reconfigured one of Keppel T&T's existing industrial buildings in Singapore into a Tier III++ sole purpose data centre facility. The data centre, equipped with eco-friendly design features and resource-efficient power and cooling infrastructure, started at the end of 2009 with several blue-chip clients.


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