SINGAPORE: Keppel DC REIT has entered into agreements with Guangdong Bluesea Data Development Co. Ltd. and its parent company, Guangdong Bluesea Mobile Development Co. Ltd., to acquire two data centre facilities, on a fully-fitted basis, in Jiangmen, Guangdong Province, for RMB 1,380.6 million (approximately S$297.1 million), a release noted.

The two transactions follow the acquisition of Guangdong Data Centre, Keppel DC REIT’s first acquisition in China, announced in July 2021. Following the completion of the latest transactions, Keppel DC REIT will own 62.9%2 of its assets in Asia.

The two data centre facilities will be named Guangdong Data Centre 2 and Guangdong Data Centre 3 (Guangdong DC 2 and Guangdong DC 3) respectively upon completion of the acquisition. Guangdong DC 2 is fully-fitted and payment will be made in full at legal completion.

Guangdong DC 3 will be fitted out, with its expected completion to take place by the third quarter of 2023. While partial payment will be made for Guangdong DC 3, Bluesea will pay Keppel DC REIT rent for the building shell and an interest on the partial payment, with the remainder to be paid when the fit-out works are completed. The properties will be leased to Bluesea on a triple net basis for 15 years.

With a gross floor area of approximately 40,920 sqm (440,462 sq ft), the two seven-storey data centres are designed in accordance with the Code for Design of Data Centre Grade A GB, where Grade A is the highest standard for data centres in China.

The Guangdong-Hong Kong-Macao Greater Bay Area has been identified as one of China’s eight national computing hubs that will support the country’s digital development.

As a major technology hub and one of China’s most established data centre markets, the Guangdong data centre market is set to grow further with the rising demand for high-quality, efficient data centres, and this market will also benefit from the tightening supply of such critical infrastructure.