Keppel enters South Korea data centre market with planned 60MW facility
The future center on the site will be an AI-ready data centre, stated Keppel in a June 9 launch. Constructed with Tier III-equivalent specifications, the data centre are going to be topped to offer hyperscalers, cloud service providers and corporates.
The South Korean information centre market is growing rapidly, claimed Keppel, backed by cloud shift, AI adoption and the nation’s aspiration to come to be an international AI giant. In the SMA, data center power demand is anticipated to hit 2.3 GW by 2030, generated by need from both international and local business.
KDCF III will certainly acquire a 73% efficient risk in a significant objective vehicle that possesses the land. The standing 27% is carried by a range of South Korean business, including developer Shinyoung, financial services firm NH Securities and construction firm Hyundai E&C.
Singapore-based asset manager Keppel has reported that its exclusive fund, Keppel Data Centre Fund III (KDCF III), has already acquired a land plot in Ansan, inside the Seoul Metropolitan Area (SMA) in South Korea. The site will be used to establish a 60MW greenfield data center, marking the firm’s first venture right into South Korea’s information facility market.
Construction licenses and power authorizations have been secured for the site, with the information center targeted to be working by 2030.
The Ansan facility will partner with Keppel’s existing portfolio of 39 information facilities, which had a total gross power capacity of over 800MW as at the end of 2025. The plan also marks the second financial investment by KDCF III, whose fund under management has actually expanded to roughly $2.7 billion as of the end of 2025.
Simultaneously, brand-new information hub supply in the SMA is limited as regulatory requirements and power constraints have actually stopped new developments. March information from JLL suggests that the SMA data centre market has a vacancy rate of simply 1.4%, while the whole supply pipeline across 2025 to 2027 has actually currently been fully pre-leased.
The SMA information centre landscape offers an engaging entry point for Keppel, observes Lee Hui Fang, primary investment officer for data centres at Keppel. “By acquiring limited power in a shovel-ready location, we are improving our deep capabilities in data centre fund monitoring and development to capture the full upside of Korea’s electronic change,” she includes.
