Story image

Keppel DC developing its first greenfield data centre in Malaysia

27 Nov 2018

The growth of Malaysia’s IT industry continues, with news today emerging of another new data centre on the horizon.

Keppel Data Centres and the Alpha Data Centre Fund (Alpha DC Fund) have sealed a deal to develop and operate their first greenfield data centre in Malaysia.

The Alpha DC Fund has initiated agreements with a technology company (an undisclosed customer) to facilitate the new high-availability build-to-suit data centre, with the initial development and subsequent facilities management undertaken by Keppel Data Centres.

An approximately 24,200 square metre plot of land within an industrial park in Johor that has been appropriated to be a data and research hub for the state is where the facility will be located, featuring minimum Tier III equivalent specifications for concurrent maintainability and around 9,300 square metres of gross floor space.

The companies involved expect the data centre to be complete and operational in 2020.

"Demand for data centres has been increasing with the expansion of the digital economy and the Alpha DC Fund is pleased to be able to capitalise on such growth in the Asia-Pacific region for its investments,” says Alpha DC Fund manager & Alpha Investment Patners CEO Alvin Mah.

“The addition of this greenfield investment provides diversification to the fund's existing portfolio."

According to Mah, the investment has been structured to include and put and call options that will be implementable under certain conditions.

The put option equips the Fund with the option to require Keppel Data Centres to purchase the holding company indirectly holding the data centre and its underlying land title sublease over an agreed period. If it is put in place, the companies are confident it will allow Keppel Data Centres to secure a steady cash flow from the data centre while also enabling greater flexibility for the Alpha DC Fund to create value for its investors within the fund life window.

And then in terms of the call option, over an agreed period the customer is able to buy back the data centre.

"Enterprises have been moving to rationalise their ageing data centre infrastructure, including moving many workload requirements to the cloud. In response, major cloud service providers and technology companies are expanding rapidly outside of top tier data centre markets to cater to this demand,” says Keppel Data Centres CEO Wong Wai Meng.

“Our customers in these segments recognise the value that Keppel Data Centres brings to the table when planning future IT workloads and data centre deployments. We are proud to be partners enabling our customers' regional expansion requirements."

SingleRAN Pro: Combining simplicity and openness for a 5G future
Huawei's SingleRAN Pro solution supposedly offers an open, simplified networking concept to help operators roll out commercial 5G networks.
Gartner recognizes Huawei's data center networking expertise
The Gartner Peer Insights Customers’ Choice analyzes more than 200,000 reviews across more than 300 markets posted to Gartner Peer Insights. 
How Huawei aims to enhance IP networks
'We believe that the intelligent IP networks built with the four-engine series products can continuously empower users with business intelligence."
Nutanix introduces new cloud-native solutions for enterprises
Nutanix announced the general availability of its certified Kubernetes solution.
VMware to roll out cloud platform on AWS in Singapore
VMware has selected AsiaPac Distribution as its launch partner for VMware Cloud on Amazon Web Services (AWS) in Singapore.
True IDC & Tencent launch AI-enabled cloud platform in Thailand
The platform is designed to offer a complete range of cloud services to the public and private sectors.
Dell EMC’s six server market trends
As the evolution of cloud-based computing continues, it is important to know what’s ahead to stay ahead of the market.
Huawei FusionServer Pro built for 'intelligent transformation'
The next generation X86 servers draw on an intelligent acceleration engine, an intelligent management ending, and intelligent data center solutions for ‘diverse’ scenarios as transformation shifts from digital to intelligent.