Keppel takes data centers to sea in land-scarce Singapore

Conglomerate adapts expertise in offshore rigs to tap global digital shift

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A Keppel employee stands at a company shipyard in Singapore. The group sees floating data centers as the next step in diversifying beyond its shipbuilding roots. © Reuters

MAYUKO TANI, Nikkei staff writer

SINGAPORE -- With demand for data centers expected to skyrocket in an increasingly digital and interconnected world, Singapore's Keppel Corp. wants to change the game by building these notoriously energy-intensive facilities out at sea.

Data centers are huge energy hogs due to their need to cool rows upon rows of servers. The state-backed conglomerate sees offshore builds as the solution both for saving energy, and for removing Singapore's geographical constraints in hosting more such facilities.

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