Keppel Data Centre specialises in operating and constructing co-location data centres. These facilities rent out rack space to various third parties, allowing multiple companies to co-locate their servers and equipment in one centre. Once these data centres achieve high occupancy and stability, they are offered to KDC REIT, providing funds for Keppel to develop new data centres and sustain the cycle.
As a hub, Singapore is an attractive location for data centres, data centre funds and investors of data centre stocks, which are listed on both the Singapore Exchange (SGX:S68
) (SGX) and Nasdaq.
The externally managed S-REIT structure in Singapore’s ecosystem makes REITs a passive investment vehicle. This setup allows pass-through cash flows to be distributed to unitholders as distributable income and distributions per unit. In this structure, Keppel is the sponsor of Keppel DC REIT (KDC REIT), while its unit, Keppel Data Centre, operates and manages KDC REIT’s data centres.
