Keppel has secured a land lease extension for a data center campus in Singapore.

Keppel Ltd. and Keppel DC REIT Management Pte. Ltd. (manager of Keppel DC REIT) late last year announced that the relevant authorities had granted conditional approval for a 10-year land tenure lease extension for the Keppel Data Centre Campus at Genting Lane in Singapore.

The extension secures the site at 82 Genting Lane until 15 July 2050. The lease extension cost was S$350 million (US$272m), being paid through debt financing.

Keppel said the extension is part of a previously announced divestment of two data centers at the campus (KDC SGP 7 and 8) to Keppel DC REIT, providing “further runway and flexibility” for Keppel DC REIT to execute expansion initiatives, including the fit-out of unutilized space into data halls at KDC SGP 8.

The company said it will also use the extended land lease to advance the development of Keppel DC Singapore 9 (KDC SGP 9), the third data center in the campus. KDC SGP 9 will be built by Keppel and its two data center private funds, namely Keppel Data Centre Funds II and III. KDC SGP 9 may be considered as a potential asset for acquisition by Keppel DC REIT after the asset is stabilized, according to the companies.

Manjot Singh Mann, CEO, Connectivity, Keppel, said: “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.”

Completed in early 2025, KDC SGP 7 totals 186,610 sq ft (17,336 sqm) across seven stories. The eight-story KDC SGP 8 totals 290,040 sq ft (26,945 sqm), and was also completed early last year.