Keppel Secures Decade-Long Lease Extension for Singapore Data Center Campus

Keppel Secures Decade-Long Lease Extension for Singapore Data Center Campus

January 9, 2026

In a strategic move to solidify its position in one of Asia's most supply-constrained markets, Singapore-based conglomerate Keppel has secured a crucial 10-year land lease extension for its flagship data center campus. The development underscores the intense competition for digital infrastructure assets in the region, driven by soaring demand from cloud providers and enterprises for artificial intelligence (AI) and high-performance computing capacity.

Keppel Ltd. and Keppel DC REIT Management Pte. Ltd., the manager of Keppel DC REIT, announced that Singaporean authorities granted conditional approval for the extension late last year. The new lease secures the Keppel Data Centre Campus at 82 Genting Lane until July 15, 2050, at a cost of S$350 million (approximately US$272 million), which is being funded through debt financing.

The extension is integral to a broader corporate strategy. It facilitates the previously announced divestment of two hyperscale facilities at the campus—KDC SGP 7 and KDC SGP 8—to Keppel DC REIT. These AI-ready assets, completed in early 2025, offer substantial capacity. KDC SGP 7 spans 186,610 square feet (17,336 square meters) across seven stories, while the eight-story KDC SGP 8 covers 290,040 square feet (26,945 square meters). The extended land tenure provides the REIT with greater flexibility to execute expansion plans, including fitting out unutilized space within KDC SGP 8 into new data halls.

Furthermore, Keppel will leverage the extended lease to advance the development of a third facility, Keppel DC Singapore 9 (KDC SGP 9). This project will be developed by Keppel alongside its private data center funds, Keppel Data Centre Fund II and III. Once operational and stabilized, KDC SGP 9 is considered a potential future acquisition target for Keppel DC REIT.

Company executives highlighted the strategic importance of the deal. Manjot Singh Mann, CEO of Connectivity at Keppel, stated, “We are pleased to secure the lease extension for the Keppel Data Centre Campus. The divestment of KDC SGP 7 and KDC SGP 8 reflects how Keppel creates value through our integrated digital infrastructure ecosystem.” Loh Hwee Long, CEO of the manager of Keppel DC REIT, added, “The additional decade of land tenure for KDC SGP 7 and 8, two AI-ready hyperscale assets, positions Keppel DC REIT to capture the growing demand in Singapore’s highly supply-constrained data center market.”

The transaction signals strong investor confidence in the long-term fundamentals of Singapore's data center sector, despite governmental pauses on new developments to manage energy consumption. It enables Keppel's listed real estate investment trust to secure and potentially expand prime, operational assets in a market where new greenfield projects face significant hurdles, ensuring a pipeline for future growth aligned with regional digitalization trends.

Source: datacenterdynamics