Real estate developer Mapletree Industrial Trust (MIT) has announced it will construct a built-to-suit data centre for an unidentified industry player at the estimated cost of S$60 million (approx. £35 million).
The new six-storey facility will be located in Tanjong Kling – Singapore’s expanding business and connectivity hub in Jurong. The site, licensed by JTC Corp with a 30-year land tenure, is also well-connected to the Ayer Rajah Expressway.
The facility will sit on a 96,800 square feet plot and will offer around 242,000 square feet of gross floor space. The data centre is to be fully leased to the client for an initial ten-year contract, with staggered rent increases and opportunity for renewal.
The new data centre is expected to be completed in the second half of next year.
Mapletree CEO Tham Kuo Wei said that the scheme will mark the next step in MIT’s strategy to grow its high-tech buildings segment by boosting its customised industrial real estate offerings.
‘The long-term lease commitment from an established client in the fast-growing data centre market will offer portfolio diversification and income stability to unit holders,’ he said.
The purpose-built data centre will be Mapletree’s third data centre site in Singapore. The developer worked on Equinix’s SG3 data centre, which opened in 2014, as well as a Communications Exchange building for Tata Communications in 2010. The Tata site was since acquired by ST Telemedia, as part of a recent deal which saw ST acquire a 74% majority stake in Tata’s data centre business in India and Singapore.
Singapore Telecommunications, or Singtel, is further building out its data centre footprint in the Jurong region, opening its ninth data centre, DC West, in the area earlier this year.