Keppel raises $1.53 billion in Fund III’s power data center amid AI boom

Keppel, a Singapore-based asset manager and operator, announced on Monday it has secured SGD2 billion (approximately $1.53 billion) in capital commitments from global institutional investors across three main strategies. The announcement continues to raise interest in AI, climate technology and infrastructure related to urban growth.

The new funds will go to Keppel Data Center Fund III, Keppel Education Asset Fund II and its sustainable urban renewal strategy.

Keppel started as a shipyard in 1968, but later transformed into a multi-sector giant, with the business line spreading across infrastructure, real estate and digital connectivity. By the end of 2024, the company is expected to manage Sgd 88 billion in assets. The company aims to more than double that to Sgd by 2030.

Temasek Holdings, a state-owned investment company in Singapore, remains a key stakeholder of the company.

Looking ahead, Keppel plans to significantly increase its data center strategy. It aims to increase data center funds under management from Sgd 9 billion to $19 billion, with capacity expanding from 650 megawatts to 1.2 gigawatts, driving demand associated with an AI-driven surge in digital infrastructure.

Christina Tan, CEO of Fund Management and Chief Investment Officer at Keppel, said the latest pay raises reflect the strong investor desire for real assets, particularly related to AI, climate response and urbanization.

“Capacity securing reflects resilient demand for alternative real assets that are fixed in macrotrends such as climate change and energy transition, urbanization and artificial intelligence,” Reuters reported, citing Keppel’s Chief Investment Officer Christina Tan.

Keppel did not name the investors, but said participants included pension funds, insurance groups and at least one sovereign wealth fund.

The pay raise brings Keppel to S$100 billion in management funds by 2026, bringing it a step closer to its goal of double it by 2030.