Keppel Ltd, a Singaporean company, has formed a joint venture with Digital Decarbonization Solutions Platform (DDSP) to develop an 80-megawatt data center campus in northern Taiwan. The 50:50 partnership between Keppel Data Centre Fund II and DDSP aims to capitalize on Taiwan’s thriving artificial intelligence and semiconductor sectors. The partners have secured a long-term contract with a leading global cloud service provider for the initial phase of the project, which is expected to be operational by 2026.
Christina Tan, CEO of fund management and chief investment officer at Keppel, expressed excitement about entering Taiwan’s flourishing data center market at an opportune time. “With the potential to scale up to 80MW, the Taiwan DC Campus bolsters our strategy to grow our portfolio of AI-ready hyperscale data center assets across Asia,” Tan stated. DDSP, an Asia Pacific infrastructure development company focused on data centers and decarbonized energy solutions, emphasized the environmental commitment underlying the project.
Keppel’s Taiwan data center initiative
Frederic Devos, CEO of DDSP, noted that the Taiwan campus is the first of several data center projects currently in development by DDSP throughout the region. Keppel’s venture into Taiwan’s data center market is part of a broader exploration of digital infrastructure opportunities in Asia.
The company recently announced a partnership with Japanese real estate giant Mitsui Fudosan to develop a data center in Tokyo, marking Keppel’s first data center development in Japan. Keppel Data Centre Fund II has almost fully committed its funds and is planning to launch the third series later this year. In a related transaction, Keppel-sponsored Keppel DC REIT recently declared its plans to acquire a data center in Japan for JPY 23.4 billion ($140 million), leveraging low borrowing costs.
This strategic expansion highlights Keppel’s ambitions to grow its portfolio across key Asian markets, riding on the digital infrastructure demand driven by new technologies and sustainable energy solutions.
