The Alpha Data Centre Fund (ADCF) has raised US$350 million from the Canada Pension Plan Investment Board (CPPIB) and the Keppel Group’s Alpha Investment Partners Limited (Alpha) and Keppel Data Centres.

The trio of investors also said that they may invest another $150 million in the fund, which now has up to $1 billion in co-investments. The fund was originally launched in July 2016 by the private fund management arm of Keppel Capital, Alpha, with the aim of initially raising $500m to invest into data centers - primarily those of Keppel Data Centres.

A growing market

Keppel DC Singapore 4
Keppel DC Singapore 4 – Keppel Data Centres Holding

“The Alpha Data Centre Fund is a prime example of how we can harness synergy and expertise across the Keppel Group to create value and deliver enhanced returns to investors,” Christina Tan, CEO of Keppel Capital and MD of Alpha, said.

“The strong interest garnered and successful closing of the Fund are testament to Keppel’s ability to grow our capital platform with investments from quality global institutional investors.”

Jimmy Phua, MD and head of real estate investments Asia at CPPIB, added: “The continued strong growth in data requirements globally has driven demand for quality data center space, particularly in the Asia-Pacific region where digital infrastructure is relatively under-developed.

“By investing alongside the Alpha Data Centre Fund, CPPIB is able to gain exposure into this critical sector, in partnership with the Keppel Group, a well-respected partner, leveraging established relationships and broad technical expertise with a focus on sustainability.”

In December 2016, ADCF made its first investment, picking up a 60 percent interest in Keppel DC Frankfurt 1 in Germany, and in July 2017 it acquired a 70 percent stake in the Keppel DC Singapore 4, which boasts 182,000 sq ft (16,908 sq m) of gross floor area.