Singapore’s Alpha Data Centre Fund has made its first acquisition in Europe for €76m in the joint purchase of a data centre in Frankfurt, Germany.
The investment partner is a subsidiary of Keppel Group, Keppel Data Centres Holding.
Alpha DC Fund had its first close in July, raising $130m (€120m).
The vehicle has a targeted $500m raise for next year.
When fully invested, the unlisted fund is expected to acquire up to $1bn in greenfield and brownfield assets across key data centre hubs in Asia Pacific and Europe.
Christina Tan, chief executive at Keppel Capital and managing director at Alpha, said the acquisition of the fund’s maiden asset soon after the first close was “testament” to Keppel Capital’s commitment to create value for investors.
“Through the Alpha DC Fund, investors are able to participate in a fast-expanding sector underpinned by strong growth trends,” Tan said.
Alpha will have a 60% stake in the data centre, known as Keppel DC Frankfurt 1 (KDC FRA 1), with Keppel Data Centres Holding owning the remaining 40%.
The facility is on freehold land in the Am Martinzehnten Industrial Park near the city centre and Frankfurt Airport.
Frankfurt is also home to the DE-CIX Internet Exchange, one of the four major data centre hubs of Europe.
With around 50% of Germany’s 170 data centres located there, Frankfurt is one of the fastest-growing data centre markets in Europe.
A subsidiary of Keppel Group, Keppel T&T Keppel Telecommunications & Transportation (Keppel T&T), will manage the operation of the facility.
Thomas Pang, chief executive of Keppel T&T, said: “We are seeing robust demand for high-availability data-centre space from businesses, financial institutions and cloud providers, stemming from post-Brexit data sovereignty concerns.
“At the same time, companies are facing pressure to scale their IT infrastructure to keep pace with fast-changing technology trends.”
The partially occupied 20,000sqm KDC FRA will provide data-centre services to a global financial institution, which will use around 25% of the space, with an option for further expansion.