"Keppel's Profit Soars Data Center Demand Drives Growth" This title effectively captures the main theme of the article, which is the significant increase in Keppel's profit due to strong demand for data centers and digital infrastructure. The use of "Soars" adds a sense of excitement and emphasis on the impressive growth, making it attention-grabbing and enticing readers to learn more.

Title Keppel's Profit Soars Data Center Demand Drives Growth

The Impact of Data Center Demand on Keppel's Annual Profit

Singapore-based asset manager Keppel has reported a significant increase in its full-year underlying profit, driven by strong demand for digital infrastructure required for artificial intelligence (AI)-based services. In its latest financial report, Keppel revealed that its annual net profit from continuing operations rose to SG$1.06 billion ($784.20 million) in 2024, up from SG$1.02 billion reported a year earlier. This represents a 5% rise, with the majority of the growth coming from its connectivity segment.

The company's connectivity arm, which operates Keppel's data center business, saw an impressive 45% jump in profit to nearly SG$900 million. This surge is attributed to the increasing demand for AI and digital infrastructure, which is expected to fuel increased investment linked to data centers in the Asia-Pacific region.

Data Centers The Backbone of Digital Infrastructure

As companies continue to rely on data centers to process and store massive amounts of data, the demand for these facilities is skyrocketing. Data centers house computer servers and equipment that support AI-based services, making them a crucial component of the digital infrastructure ecosystem. Keppel's focus on expanding its data center capacity and funds under management is paying off, with the company intending to more than double its data center funds under management by 2030.

A Shift in Focus From Shipbuilding to Asset Management

Founded over 56 years ago as a shipbuilding yard, Keppel has undergone significant transformations over the years. The latest milestone marks a shift towards asset management, with the company aiming to oversee SG$200 billion by 2030. To achieve this goal, Keppel is expanding its funds under management, which had reached SG$88 billion by December-end. This expansion will enable the company to capitalize on the growing demand for digital infrastructure and data centers.

Conclusion

Keppel's strong performance in 2024 demonstrates the significance of data center demand in driving growth. As companies continue to invest in AI-based services, the demand for digital infrastructure is expected to rise, fueling increased investment linked to data centers. In this rapidly evolving landscape, Keppel's focus on expanding its data center capacity and funds under management positions it well to capitalize on the growing demand for digital infrastructure. With a target of overseeing SG$200 billion by 2030, Keppel is poised to emerge as a leading player in the asset management space.

Keywords Data centers, Digital infrastructure, Artificial intelligence (AI), Keppel, Asset management

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.