03 June 2019

Keppel Data Centres invests in edge data centre developer and operator, Etix Group S.A.

Keppel Data Centres Holding Pte Ltd1 (Keppel Data Centres) has invested approximately €14 million in the Series C funding of Etix Group S.A. (Etix), giving it a minority stake in Etix, post-money. Etix is a Luxembourg-based data centre developer and provider of data centre colocation services. It leverages prefabricated data centre modules for quick data centre deployment and has built up a network of edge2 and high-performance computing data centres3 across Europe, Africa, Latin America and Southeast Asia. To date, the company has deployed more than 50 MW of colocation capacity through 12 data centres, and has a strong development pipeline for expansion.

Etix also has a unit that carries out research and development for the Etix group of companies. It has an innovative portfolio that includes patented solutions to help partners and customers optimise energy efficiency, security, and IT workloads in their data centres.

Keppel Data Centres' investment in Etix comes at a time when the importance of edge data centres is coming to the fore. Through the deployment of smaller and decentralised servers away from the network source, enterprises are increasingly looking to bring data processing closer to where the data is actually consumed, driven by latency, data security, and data sovereignty considerations. Gartner4 predicts that by 2022, 50% of all data would be processed in an edge environment, up from 10% in 2017.

Mr Wong Wai Meng, CEO of Keppel Data Centres, said, "Keppel Data Centres has built up an enviable track record of developing high quality wholesale colocation and hyperscale data centres that serve the mission-critical needs of blue-chip customers. We are plugged into their needs and understand that IT-workload requirements can either scale very large, or sometimes necessitate small and agile deployments at the edge.

"Our investment into Etix allows Keppel Data Centres to tap the growing demand for edge facilities and opens new possibilities for potential synergies to be explored between our complementary businesses, such as tapping Etix's cutting edge research technologies. This will give Keppel Data Centres the opportunity to deploy some of these new technologies in our data centres and deliver tangible benefits for our data centre customers," he added.

The above transaction is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

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1 Keppel Data Centres Holding Pte Ltd. is a 70-30 joint venture between Keppel Telecommunications & Transportation and Keppel Land
2 Edge data centres are smaller scale facilities, typically smaller than 1MW, which are located close to end-user locations in population centres like business parks and cities, to maximise speed of data transmission and processing
3 High-performance computing data centres provide colocation services to segments that require high IT-rack densities such as blockchain and cryptocurrency applications, or supercomputers such as those operated by research institutions.
4 The Edge Will Eat The Cloud, Maverick*Research, Gartner, 2017

About Keppel Data Centres Holding

Keppel Data Centres Holding (Keppel Data Centres) is a 70-30 joint venture between Keppel Telecommunications & Transportation Ltd (Keppel T&T) and Keppel Land, both subsidiaries of Keppel Corporation Limited, a leading company listed on the Main Board of the SGX-ST with core businesses in offshore and marine, property, infrastructure and investments.

Keppel Data Centres has a track record of more than a decade in owning, developing and managing high quality carrier-neutral data centre facilities that support mission-critical computer systems. Keppel T&T is also the sponsor of Keppel DC REIT, the first data centre Real Estate Investment Trust (REIT) listed in Asia and on the SGX-ST. Together with assets owned through Keppel DC REIT, the Keppel Group has a global portfolio of more than 20 data centres located in key data centre hubs across Asia Pacific and Europe.