Will Keppel T&T be able to ride on growing demand for data centres?

With its Alpha DC Fund, data centre development would likely double.

As Singapore is slowly fulfilling its Smart Nation vision for the city-state, Keppel Telecommunications & Transportation (Keppel T&T) may see large growth potential for its business.

According to a report by UOB Kay Hian, data centres (DC) form the core infrastructure of the digital economy, with global growth in data traffic leading to DC traffic more than tripling.

"Over the same period, driven by cloud computing, workloads in DCs will double while Big Data will grow data stored in DCs at a 30% CAGR. To put this into perspective, Singapore’s Smart Nation initiative could require 245 Olympic pools of square-feet rack capacity in 2019," the report said.

More so, the overall enterprise outsourcing trend will help demand for DCs like Keppel T&T.

Furthermore, the decision of the top management to set up the Alpha DC Fund (ADCF) underlines growth and potential DC development for the company.

"With ADCF, the rate of DC development could double and is likely to snowball as DCs get divested and capital is recycled," the report explained.