Keppel Ltd. (BN4) announced on Jan, 15 2026 that its Connectivity Division has obtained rights to lease a 123-hectare site near Morwell, Victoria, giving the group access to as much as 720 MW of power capacity for future artificial-intelligence data-centre development and expanding its regional “powerbank” pipeline to more than 1 GW.
The agreement with landowner Lightwood Group Pty Ltd allows Keppel to pay an annual access fee for early site works—such as planning approvals and power and water procurement—before its private data-centre funds enter long-term leases, providing what the company calls a capital-efficient approach to development.
Located within the proposed Gippsland Renewable Energy Zone, the site can connect directly to nearby transmission infrastructure, potentially cutting power costs. It also offers existing water supply and proximity to intercity dark-fibre routes linking Melbourne, Sydney and Canberra.
Keppel said it is in talks with hyperscale and “neocloud” customers interested in Melbourne’s fast-growing data-centre market, where colocation vacancy stood at 4 % in the fourth quarter of 2025 and demand is forecast to rise at a 29 % compound annual rate through 2029.
Deputy CIO of Data Centres Lee Hui Fang added that the powerbank strategy supports Keppel’s private data-centre funds, noting that Keppel Data Centre Fund III has attracted more than 2.7 billion Singapore dollars in funds under management and that the enlarged pipeline could add roughly 10 billion Singapore dollars to FUM over the next few years.
The transaction is not expected to materially affect Keppel’s earnings per share or net tangible assets per share for the current financial year.
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