Case in point: In December 2025, Keppel DC REIT announced it would pay the final sum of $350 million to the sellers for an additional 10-year lease extension for the Keppel Data Centre Campus at Genting Lane. Of this, the land cost to be paid to the authorities is $9.9 million. Of course, the gross rental income, based on current rates, is likely to be $500 million for the period, say market observers.
According to a recent report by Moody’s Ratings, at least US$3 trillion ($3.8 trillion) is expected to be invested in data centre-related projects over the next five years, covering servers, computing equipment, data centre facilities, and new power capacity.
Unlike commercial property, the land of a data centre typically represents only 10% to 30% of the total cost. The rest is made up of the data centre itself, access to power, and the supporting infrastructure.
