Keppel has announced it plans to develop a new data center in Huailai County, Hebei Province, Beijing, China, through a partnership between Keppel Data Centre Fund II LP (KDCF II) and Heying, a wholly-owned subsidiary of Tianjin Zhengxin Group Co., Ltd.

With a total development cost of approximately S$292.0 million (US$210.27 million), Keppel Data Centres and Heying will jointly develop the Huailai data center property as well as implement operational practices at the facility.

“Keppel Data Centres’ strategy to work with strong experienced partners and in collaboration with Keppel Capital, enables us to harness synergies and scale up swiftly in developing and operating high quality data centers in our key growth markets,” said Mr Wong Wai Meng, CEO of Keppel Data Centres.

“This has helped place Keppel Data Centres in pole position to meet the requirements of cloud service providers, hyperscalers and technology firms in one of the world’s fastest growing markets, building on our strong data center development and operational track record.”

The new Huailai facility is sited on a 3.3 hectare land parcel which also forms part of a larger data center campus that spans 29.7 hectares. As designed, the Huailai data center will have a gross floor area of 678,807 square feet, expected to accommodate more than 5,700 high-density racks, and meet China’s data center Class A GB-standard specifications.

KDCF II is managed by Alpha Investment Partners Limited (Alpha), the private fund management arm of Keppel Capital. As announced, KDCF II will acquire a majority stake in the new Huailai data center, which further marks Keppel’s sixth project since entering China’s mainland data center market in 2020.

“We are pleased to partner with Heying to enter into one of China’s largest data centre hubs. Demand for data centres in China has been resilient, attracting strong investor interest,” said Mr Alvin Mah, CEO of Alpha.

“Keppel Data Centre Fund II LP is well-positioned to seize investment opportunities in this growing sector as we are able to collaborate with the wider Keppel Group to provide robust and reliable data centre solutions. We will continue to add more quality assets in key global markets to the Fund’s portfolio that will deliver optimal risk adjusted returns to our investors.”

According to Keppel, the development of “Huailai Data Centre” will be delivered in phases and expected to be fully ready for service by Q1 2023.