Mapletree Industrial Trust said on Tuesday that after signing a lease agreement with global data center and interconnection company Equinix, plans have been underway to upgrade the 7 Tai Seng Drive property in Singapore to a data center.
The data center will have a gross floor area of around 256,600 square feet, it said in a filing to SGX on Tuesday after the market close.
Upgrading works on the property began in September and have included increasing the power and floor-loading capacity and adding telecommunications infrastructure, it said, adding the total cost of acquiring the property and the upgrade is expected to be around S$95 million.
Equinix also has a presence at the trust’s properties at 26A Ayer Rajah Crescent in Singapore, which is a data center purpose-built for Equinix, and 180 Peachtree in Atlanta, Georgia, in the U.S., the filing said.
Tham Kuo Wei, CEO of the trust’s manager, Mapletree Industrial Trust Management, pointed to Equinix as a returning client.
“The commitment from Equinix underscores its confidence in MIT’s ability to deliver customized industrial real estate solutions,” Tham said in the statement. “This project is in line with our expanded strategy to capture opportunities in the fast-growing data center sector, which is underpinned by growth in data creation and storage as well as increasing compliance requirements on data security in Singapore.”