Keppel Data Center REIT Locations

Planning and urban design company Urbis has applied to authorities to build a new Australian data centre in the Brisbane area.

The company’s application shows intent to build on a plot at 7001 Hoepner Road, Bundamba, which is near the city of Ipswich, around 30km from Brisbane. The initial construction would consist of four data halls, with each of those supplying 2.5MW of capacity, making up to 10MW. A second stage of building would then add another total space of similar size, according to the plans.

Read More at data-economy.com

American tech giant Amazon is planning a 14 trillion-rupiah (SS1.3 billion) foray into Indonesia, in another major investment in the South-east Asian digital economy. The plan was conveyed to Indonesian President Joko Widodo by Amazon Vice-President Werner Vogels during their meeting in Jakarta on Friday (Sept 21), according to local news reports.

Finance Minister Sri Mulyani Indrawati, who was also in the meeting, told Tempo news that the investment will be spread over a 10-year period. It will see the introduction of the firm's cloud computing unit, Amazon Web Services (AWS), to the Indonesian market.

Cloud computing generally refers to hosting services and applications over the Internet on a pay-for-use basis, and the platform is seen as a key pillar for the growth of Indonesia's vibrant start-up scene. According to market research firm Statista, cloud computing spending in Indonesia is expected to hit US$1.3 billion (S$1.8 billion) by this year, up from just US$160 million in 2012.

But Amazon will face stiff competition from its Chinese rival Alibaba which opened its data centre - the first by a major cloud service provider - in Indonesia earlier this year as part of the company's plan to support local start-ups in the country...

Read More: The Straight Times

It will spend $26.3m to $36.41m on the construction.

Keppel DC REIT will be expanding in Australia through a new shell and core data centre which will be built on the vacant land within the Macquarie Business Park precinct in Sydney, it said in an announcement.

Macquarie Telecom, the master lessee of the existing shell and core data centre called Intellicentre 2 Data Centre (IC2 DC), will be the developer. It will also be the master lessee of the data centre when completed.

The expansion to the Macquarie Telecom data centre campus will be named Intellicentre 3 East Data Centre (IC3 East DC) and will feature a minimum of 86,000 sqft of lettable area upon its completion, which is expected to be between 2019 and 2020.

Keppel DC REIT will make a payment based on the actual total costs of construction works, within a range of $26.3m to $36.41m (A$26m to A$36m), to be payable to Macquarie Telecom only on completion.

Upon the completion of the development, a new 20-year triple-net master lease with Macquarie Telecom incorporating both IC2 DC and IC3 East DC shell and core buildings will commence. The lease will include built-in annual rental escalations with renewal options.

Assuming the completion of IC3 East DC had occurred on 30 June 2018, the transaction would have increased the portfolio Weighted Average Lease Expiry (WALE) from 8.8 years to 9.9 years and the portfolio aggregate lettable area would have increased to approximately 1,198,103 sqft.

Source: Singapore Business Review