Keppel is to develop its first data center in Taiwan.

Keppel Ltd. this week announced its private fund, Keppel Data Centre Fund II (KDCF II), has entered into a joint venture (JV) with Digital Decarbonization Solutions Platform (DDSP) to develop an 80MW Tier III-equivalent greenfield data center campus in North Taiwan.

KDCF II will hold a 50 percent interest in the joint venture, with the rest being held by DDSP, an APAC infrastructure development company focused on delivering data centers and decarbonized energy solutions.

The campus will be developed in two phases, with the first expected to be ready for service in 2026.

Keppel said the first building has secured a long-term contract with a “leading global cloud service provider” with capacity available for future expansion.

Christina Tan, CEO of fund management and CIO of Keppel, said: “We are excited to enter Taiwan’s flourishing data center market with an attractive investment at an opportune time amid the boom in the AI and semiconductor sectors. With the potential to scale up to 80MW, the Taiwan DC Campus bolsters our strategy to grow our portfolio of AI-ready hyperscale data center assets across Asia.

Frederic Devos, CEO of DDSP, added: “We are proud to announce DDSP's first data center campus in Taiwan, in partnership with Keppel, a Tier 1 partner. This exciting collaboration highlights our shared commitment to decarbonization, and sustainable growth to benefit our customers."

Devos added that this campus is the first of several currently under development by DDSP in collaboration with data center operators, though further details weren't shared.

Keppel said that with KDCF II having committed more than 90 percent of its total funds, the company is planning to launch the third edition of its flagship data center fund series later this year.

Across Asia, Keppel has data centers in operation and development in Indonesia, China, Singapore, and Malaysia. Singapore sovereign wealth fund Temasek Holdings is a major shareholder in Keppel Ltd.