Keppel is entering the data centre market of South Korea after one of its private funds, Keppel Data Centre Fund III, secured land to develop a 60MW greenfield data centre in Ansan, which is situated within the Seoul Metropolitan Area.
The fund will hold an effective stake of 73% in this development and the data centre is targeted to be ready by 2030. The estimated cost of this project, with both construction and power supply permits secured, is not provided.
According to Keppel, new data centre supply in the vicinity is "limited" due to curbs on power supply. Within the Seoul Metropolitan Area, vacancy rate is just 1.4% and that new supply coming for 2025 to 2027 has been fully pre-leased.
"These conditions create a highly favourable environment for Keppel’s greenfield development, which is well-positioned with secured power," says Keppel.
KDCF III’s entry into South Korea data centre market, through this project, will add to Keppel’s data centre portfolio of 39 data centres, which has a gross power capacity of over 800 MW as at end 2025.
The project is also the second investment by KDCF III, whose fund under management had grown to approximately $2.7 billion as at end 2025.
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Keppel’s total FUM under its "connectivity" business segment, which includes KDCF III, had approximately $13 billion as at end 2025.
"South Korea represents a compelling growth market for digital infrastructure, underpinned by strong demand from cloud service providers and hyperscalers, alongside limited new supply in the SMA," says Manjot Singh Mann, Keppel's CEO of its Connectivity Division.
"South Korea is one of Asia’s most exciting data centre investment markets, and this project positions Keppel at the heart of it," says Lee Hui Fang, Keppel's chief investment officer, data centres.
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"The convergence of burgeoning AI workloads and a power-constrained market in SMA creates a compelling entry point for Keppel. By securing scarce power in a shovel-ready site, we are building on our deep capabilities in data centre fund management and development to capture the full upside of Korea’s digital transformation to offer our investors compelling investment opportunities with attractive, risk-adjusted returns," she adds.
Keppel shares closed at $10.46 on June 8, down 1.23% for the day.
