Singapore’s Economic Development Board (EDB) and the Infocomm Media Development Authority (IMDA) have provisionally awarded Keppel 50 MW of new data centre capacity. The allocation was granted under the second Data Centre Call for Application (DC-CFA2), an open competitive exercise that received more than 20 proposals.

The awarded capacity will power Keppel’s upcoming facility, Keppel Data Centre Singapore 11 (Keppel DC SGP 11), located on Jurong Island. The development of the AI-ready facility involves an expected investment of over S$1 billion. Keppel Data Centre Fund III and its co-investors will fund the project, bringing ready capital to deploy across high-quality regional data centre opportunities.

Targeting a power usage effectiveness (PUE) of under 1.2, the facility plans to cover more than 50% of its power needs using eligible green energy pathways. Keppel also expects the site to reach a water usage effectiveness (WUE) of roughly 1.6. To achieve this, the company will draw on its experience with thermal management solutions, including liquid cooling, district cooling and seawater cooling systems.

Mr Manjot Singh Mann, CEO of Keppel’s Connectivity Division, said, “AI is driving rapidly growing demand not only for compute, but also for the reliable power, water and connectivity needed to support it. Keppel’s strength is our ability to bring these capabilities together from power to rack by leveraging our proven expertise across asset management and operations to support Singapore’s requirements for resource-efficient and sustainable data centre growth.

“On Jurong Island, we have the opportunity to harness our data centre and subsea cable expertise alongside Keppel’s established power and energy infrastructure to develop digital infrastructure that is efficient, resilient, increasingly sustainable and well-connected. This integrated ecosystem approach differentiates Keppel and positions us well to support Singapore’s ambitions as a trusted global hub for AI and digital investments.”

The award adds to Keppel’s track record in digital infrastructure, which includes a floating data centre concept and subsea cable networks like Bifrost and the proposed Kruger Cable System. On Jurong Island, Keppel operates 1,900 MW of power generation capacity through the Keppel Merlimau Cogen Plant and the hydrogen-compatible Keppel Sakra Cogen plant. It is also carrying out front-end engineering design for a 55-65MW zero-emission power initiative using ammonia, alongside exploring micro-thermal grids and Energy-as-a-Service schemes with JTC.

Keppel confirmed that the award will not have any material impact on its net tangible assets per share or earnings per share for the current financial year.