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Keppel, Salim Group to jointly develop and operate data centre in Indonesia
MAINBOARD-LISTED Keppel Corporation said early Monday that it has entered into signed conditional agreements to jointly develop and operate a high-availability data centre in Bogor near Jakarta with Indonesian conglomerate The Salim Group.
The agreement was signed by Keppel and The Salim Group through the Alpha Data Centre Fund (Alpha DC Fund), managed by Alpha Investment Partners Limited (Alpha), and Keppel Data Centres Holding Pte Ltd.
In a joint statement, the companies said: "The data centre, IndoKeppel Data Centre 1 (IKDC 1), will be developed and operated by a 60:40 joint venture between the Salim Group and Keppel Data Centres. The development of the facility will take place over three phases and will feature a gross floor area of approximately 105,300 square feet."
The construction of the data centre’s core and shell, as well as first phase fit-out is expected to be completed by the first half of 2020, the companies said.
Moreover, through the agreement, IKDC 1 and its underlying three hectare land plot will be held by a 60:40 joint venture between the Salim Group and the Alpha DC Fund respectively.
The companies envision that this land plot will be the first phase of what would be a larger seven hectare data centre campus development that will cater to growing demand for data centre space in Indonesia.
The Salim Group already owns and operates a data centre in Indonesia serving financial institutions and enterprise customers.
Said Wong Wai Meng, CEO of Keppel Data Centres: “The partnership with the Salim Group is a prime example of Keppel Data Centres’ strategy of working with strong local players in high growth markets to design and build the robust infrastructure necessary for the digital economy’s expansion and future proofing. We make sure that there’s flexibility for growth and future capacity when our customers need it – power, space and connectivity should always be available to allow our customers to continue growing in our data centres.”
Meanwhile, Sugiharto Darmakusuma, director of Salim Group said: “With our extensive fibre optic connectivity throughout Indonesia and Keppel Data Centres’ presence across the globe, we believe that we have met a perfect match to take part in the smart industry revolution.”
Keppel shares ended down S$0.03 or 0.5 per cent at S$6.36 on Friday, while Keppel T&T shares closed flat at S$1.37.