Keppel raises $1.53 billion for Fund III to power data centers amid AI boom

Keppel, the Singapore-based asset manager and operator, announced on Monday it has secured S$2 billion (about $1.53 billion) in capital commitments from global institutional investors across three of its flagship strategies. The announcement came as interest in infrastructure tied to AI, climate tech, and urban growth continues to climb.

The fresh funding will go into the Keppel Data Centre Fund III, the Keppel Education Asset Fund II, and its sustainable urban renewal strategy.

Keppel started out in 1968 as a shipyard but has since transformed into a multi-sector giant, with business lines stretching across infrastructure, real estate, and digital connectivity. By the end of 2024, the company is expected to manage SGD 88 billion in assets. The firm is aiming to more than double that to SGD 200 billion by 2030.

Temasek Holdings, Singapore’s state-owned investment firm, remains a major stakeholder in the company.

Looking ahead, Keppel plans to ramp up its data center strategy in a big way. It’s targeting an increase in data center funds under management from SGD 9 billion to SGD 19 billion and plans to scale capacity from 650 megawatts to 1.2 gigawatts, fueling demand tied to the AI-driven surge in digital infrastructure.

Christina Tan, CEO of fund management and Chief Investment Officer at Keppel, said the latest raise reflects strong investor appetite for real assets tied to long-term macro shifts—especially AI, climate response, and urbanization.

“Securing of capital reflected the resilient demand for alternative real assets anchored to macrotrends including climate change and energy transition, urbanisation, and artificial intelligence,” Reuters reported, citing Keppel Chief Investment Officer Christina Tan

While Keppel didn’t name the investors, it said participants included pension funds, insurance groups, and at least one sovereign wealth fund.

With this raise, Keppel moves a step closer to its goal of hitting S$100 billion in funds under management by 2026, and doubling that by 2030.