CPPIB invests up to S$350m in Keppel's Alpha Data Centre Fund

THE Alpha Data Centre Fund (ADCF), managed by Keppel Capital's wholly owned unit, Alpha Investment Partners, is receiving another shot in the arm from Canada Pension Plan Investment Board (CPPIB), which is investing up to US$350 million of capital, with an option to invest another US$150 million.

CPPIB's latest commitment and option will bring the ADCF's total fund size to up to US$1 billion, doubling the Fund's initial target size of US$500 million.

When fully leveraged and invested, the Fund will potentially have assets under management of about US$2.3 billion, said Keppel Capital, the asset management arm of Keppel Corporation.

Jimmy Phua, CPPIB managing director and head of real estate investments for Asia, said: "The continued strong growth in data requirements globally has driven demand for quality data centre space, particularly in the Asia-Pacific region where digital infrastructure is relatively under-developed. By investing alongside the ADCF, CPPIB is able to gain exposure into this critical sector."

The ADCF was launched in July 2016 by Alpha amid strong interest from institutional investors for quality alternative asset classes.

This fund taps the experience of Keppel Data Centres - a 70-30 joint venture between two Keppel group entities, Keppel Telecommunications & Transportation Ltd and Keppel Land - that has designed, built and managed data centres for more than a decade.