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In Land-Constrained Singapore, Keppel Plans a Floating Data Centre at Loyang

Keppel proposes a floating data centre at Loyang, Singapore, with a closed-loop seawater cooling design and substantial shore infrastructure. Its EIA and annual report use different capacity figures, and the reported construction and completion dates remain targets.
From TheFinanceBase Team3 min to read
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Keppel is planning a floating data-centre development at Loyang, Singapore, as one response to constraints on land, energy and water. The proposal combines a four-storey floating module with shore-based facilities; it is not a data centre entirely at sea. Keppel reported that the environmental impact assessment was completed in 2025, with construction expected to start in the first half of 2026 and completion targeted by 2028. Those are company-reported plans, not confirmation that construction or approvals are complete.

What Keppel is proposing at Loyang

Keppel Data Centre Fund II proposes a modular floating data-centre development together with supporting shore infrastructure. The environmental impact assessment (EIA), revised 2 June 2025, describes approximate footprints of 9,870 m² on land and 7,580 m² at sea. It says the site is zoned Business 2 under the URA Master Plan 2019. Keppel Data Centres’ EIA

The EIA describes a four-storey floating module designed for up to 19.2 MW of IT load. Its listed features include seawater-cooled chillers, onboard cooling infrastructure and a retention-pile mooring system. The shore component includes substations, offices, diesel storage, pipe racks, photovoltaic panels, walkways and administrative facilities. In other words, “floating” describes the data-centre module, not a project that needs no land.

Why Keppel is exploring a floating design

Keppel frames the project as a response to constraints on land, energy and water. In its 2025 annual report, the company said the project “demonstrates a practical and scalable approach to addressing land, energy and water constraints often faced by data centres.” That is Keppel’s characterization of its proposal; it does not establish that the design will deliver those benefits at scale. Keppel Ltd.’s Annual Report 2025

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Singapore’s data-centre market provides context, but does not prove how much capacity this project would add to the market or how far it would ease constraints. Keppel DC REIT’s 2024 annual report, drawing on an independent market review by DC Byte, estimated Singapore supply at 1,071 MW and demand at 1,062 MW in 2024, equivalent to estimated utilisation of 99.2%. The review also estimated year-on-year demand growth of 74 MW in 2024 and projected demand of 1,448 MW by 2028. These are market-review estimates and a forecast, not official metered totals or current observed figures. Keppel DC REIT’s Annual Report 2024

The same report describes a data-centre development moratorium introduced in Singapore in 2019 and later application exercises, alongside IMDA’s Green Data Centre Roadmap, as signs of easing subject to sustainability and economic conditions. It says IMDA announced plans to add 300 MW of data-centre capacity and 200 MW of green-energy deployments over the next few years. Those were announcements reported in 2024, not evidence that the capacity or energy deployments have since been delivered.

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Cooling and environmental issues assessed

The EIA describes a closed-loop seawater cooling system and low-global-warming-potential refrigerants. Its design also includes onboard cooling equipment. The assessment considers potential effects from construction and operation, including air quality, noise, sediment plumes and sedimentation, thermal and chlorine plumes, and direct impacts.

To assess those effects, the report describes baseline environmental surveys, numerical modelling, impact evaluation, stakeholder engagement, and proposed mitigation, monitoring and management measures. An assessment and proposed controls do not establish that the project will have no environmental impact; they set out the topics examined and measures proposed to manage them. Keppel Data Centres’ EIA

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Why the 19.2 MW and 25 MW figures differ

The two figures appear in different descriptions and should not be treated as interchangeable. Keppel’s EIA says the floating module is designed for up to 19.2 MW of IT load. Keppel’s 2025 annual report calls it a 25 MW project, funded by Keppel Data Centre Fund II and committed to a global hyperscaler. The report does not define the 25 MW figure as IT load or explain how it maps to the EIA’s design figure, so the available descriptions do not establish that they measure the same capacity. Keppel Ltd.’s Annual Report 2025

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What is known about approvals and timing

Keppel’s 2024 annual report said the project had reached final investment decision in the second half of 2024 and was pending government approvals at that time. Its 2025 annual report says the EIA was completed during 2025, construction was expected to start in the first half of 2026, and completion was targeted by 2028. The latter dates are company-reported expectations and a target, not verified milestones. The cited reports do not establish whether construction started on schedule, whether every government approval has been obtained, or whether the completion target has changed since the 2025 report. Keppel Ltd.’s Annual Report 2024 · Keppel Ltd.’s Annual Report 2025

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