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Keppel Telecommunications & Transportation (Keppel T&T) on Friday said it invested US$10 million in data centre startup Nautilus Data Technologies Inc.

The investment, which was through its subsidiary, Keppel Data Centres Pte, was made in Nautilus' Series C preferred stock funding, the company said in a statement.

California, United States-based Nautilus employs patented water-cooling technology in pre-fabricated facilities, which are more cost efficient and environmentally sustainable than traditional structures and can be rapidly deployed across the globe.

Nautilus was the first company to successfully launch a waterborne data centre prototype in 2015, Keppel T&T said.

Nautilus is currently building its first commercial data centre at Mare Island Naval Shipyard in Northern California, and deployment is scheduled for early 2018.

The carrier-neutral data centre facility will feature power capacity of approximately 6MW distributed across four data vaults with redundancy for connectivity and power, the company said.

"Through this investment, we can also explore opportunities for collaboration and harnessing of synergies within the Keppel Group, for example, by tapping the group's capabilities and experience in the offshore and marine sector for the development of floating water-cooled data centres," said Wong Wai Meng, CEO of Keppel Data Centres.

Shares in Keppel T&T fell 0.3 percent to S$1.53 on the Singapore Exchange.