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Consolidating for Growth

Integrating the core competencies across the Keppel Group, Keppel Telecommunications & Transportation (Keppel T&T) and Keppel Land formed a joint venture company on 25 January 2011 to consolidate their data centre assets, positioning the business for further growth.

The joint venture company, Keppel Data Centres Holding Pte Ltd (JV Co), will be 70%:30% indirectly held by Keppel T&T and Keppel Land respectively. Its principal business activities will be owning, managing, and operating data centres and disaster recovery centres, as well as investing in and holding companies which own and operate data centres and disaster recovery centres.

As a start, the JV Co has acquired two data centre assets, Keppel Datahub and Keppel Digihub, currently owned by Keppel T&T and Keppel Land respectively. Both data centres are carrier-neutral and Tier 3+ facilities, which offer one of the highest levels of reliability and network availability in the industry.

Mr Pang Hee Hon, CEO of Keppel T&T, said, "Leveraging our synergy with sister company, Keppel Land, we continue to expand our data centre business which is core to Keppel T&T's growth story.

"By consolidating our resources of manpower, processes and systems, we can potentially enjoy greater economies of scale and provide our customers with better and more cost-efficient solutions. Management of our data centres under one entity also allows us to provide stronger business continuity and disaster recovery (BCDR) services to customers who wish to house their BCDR facilities in different locations."

With the two data centres, the JV Co has more than 150,000 square feet of data centre and BCDR space with its existing portfolio of blue chip clients. The JV Co will be well positioned to capture more opportunities as a significant wholesale co-location provider.

Keppel DataHubKeppel DigiHub
Consolidating the two data centres under the new joint venture company to bring about greater economies of scale

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