Keppel, the data center real estate investment trust (DC REIT) based in Singapore, has bought a facilty in Cardiff, Wales, for £34 million ($42m or S$58m).

The two-story building, along with a three-story office block, is currently owned by Cardiff Data Investments and fully leased to an unnamed international telecoms firm.

keppel dc reit cardiff
The Cardiff building bought by Keppel  – Keppel

A Celtic gateway

The shell and core of the building, in the Celtic Gateway business park, Cardiff Bay is Keppel’s fourth acquisition since 2014, and brings its total holdings to ten data centers worldwide, including facilities in Italy, Germany and the Netherlands.

The Welsh data center is a 26,000 sq m freehold site and has around 7,000 sq m of data center space, according to Reits Week, which also found the image above.

“The strategic addition of this facility presents an attractive opportunity for Keppel DC REIT to participate in Cardiff’s growth as one of the emerging digital clusters that hosts an Internet exchange point outside of London,” said a statement from Keppel CEO Chua Hsien Wang, quoted in Singapore Business Review. “The city is undergoing a digital transformation, driven by strong government support and a growing business community.”

The current tenant, an unnamed telco, has the space for three years, on a lease signed earlier in 2016, Reits Week reports. 

Keppel says it needs the new facility to meet increased demand in the UK and Europe for on-shored data driven by privacy regulations.