Keppel enters South Korea data centre market with planned 60MW facility
The SMA data center landscape supplies an engaging entry point for Keppel, observes Lee Hui Fang, chief investment officer for information hubs at Keppel. “By acquiring limited power in a shovel-ready site, we are building on our deep capacities in information centre fund regulation and growth to record the complete upside of Korea’s electronic change,” she adds.
KDCF III will get a 73% effective risk in a significant purpose vehicle that possesses the land. The remaining 27% is carried by a range of South Korean companies, including developer Shinyoung, financial services firm NH Securities and construction company Hyundai E&C.
The South Korean data center market is developing quickly, said Keppel, supported by cloud move, AI adoption and the nation’s ambition to become a global AI powerhouse. In the SMA, information centre strength need is anticipated to strike 2.3 GW by 2030, generated by demand from the two international and domestic business.
Singapore-based asset supervisor Keppel has released that its exclusive budget, Keppel Data Centre Fund III (KDCF III), has recently obtained a property plot in Ansan, within the Seoul Metropolitan Area (SMA) in South Korea. The site will be used to develop a 60MW greenfield data center, noting the firm’s first foray into South Korea’s data center market.
Simultaneously, new data hub supply in the SMA is limited as regulating requirements and power constraints have cut new developments. March data from JLL shows that the SMA data center industry has a vacancy price of just 1.4%, whilst the whole supply pipe across 2025 to 2027 has already been completely pre-leased.
Construction authorizations and power approvals have actually been secured for the site, with the information center intended to be working by 2030.
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The future center on the site will be an AI-ready data center, said Keppel in a June 9 release. Built with Tier III-equivalent specifications, the information centre are going to be keyed to serve hyperscalers, cloud service providers and corporates.
The Ansan facility will sign up with Keppel’s existing portfolio of 39 information facilities, which had a complete gross power capacity of over 800MW as by the end of 2025. The project additionally notes the second investment by KDCF III, whose fund under supervision has actually grown to approximately $2.7 billion as of completion of 2025.
