KEPPEL Data Centre Fund II (KDCF II), which is managed by Keppel Limited : BN4 0%, has inked a framework agreement with Mitsui Fudosan Co for the proposed forward purchase of a data centre currently under development in western Tokyo.

Keppel did not provide the purchase cost in a media statement on Monday (Mar 11) for its first data centre project in Japan.

Under the agreement, the fund will work exclusively with Japanese-listed property player Mitsui Fudosan on the acquisition of the freehold purpose-built data centre, which has a planned gross floor area of more than 300,000 square feet.

Keppel said the facility is expected to be “ready for service” in 2027, with Mitsui Fudosan expected to develop the core and shell of the data centre and KDCF II to undertake the fit-out works.

KDCF II will also appoint Keppel Data Centre & Networks as the facility manager of the data centre.

Separately, Keppel has signed a memorandum of understanding with Mitsui Fudosan to jointly explore data centre development and investment opportunities in Japan and South-east Asia.

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Keppel’s statement said that data from Statista showed revenue in the Japan Public Cloud market is projected to reach US$21 billion in 2024 and expected to hit US$34 billion by 2028.

Keppel has invested in more than 30 deals in Japan across various asset classes from residential, commercial real estate to logistics and education.

Shares of the counter closed at S$7.18 on Monday, up S$0.02 or 0.3 per cent, before the announcement.