Data Centre S-REITs

Data-centre REITs own the digital infrastructure behind cloud and AI. Structural demand is strong and the APAC development pipeline is at record levels, but the names differ on geography, tenant concentration and currency.

3 trusts S$7.6B combined cap 7.3% median yield 0.85x median P/NAV

Data Centre screen

REITPrice YieldP/NAV Mkt cap
NTT DC REIT
SGX:NTDU · NTT Group
US$0.98011.35% 0.85US$1.00B
Digital Core REIT
SGX:DCRU · Digital Realty
US$0.4907.35% 0.61US$639M
Keppel DC REIT
SGX:AJBU · Keppel
S$2.2504.58% 1.32S$5.50B

Yield vs P/NAV

Data Centre trusts plotted. Up = higher yield; left = cheaper vs book.

Data-centre demand is structurally strong (AI/cloud), and the APAC pipeline is at record highs. Premium valuations reflect scarcity; the risks are tenant concentration, power constraints and, for USD names, currency.

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What drives the Data Centre sub-sector

Data-centre S-REITs are pure-play digital-infrastructure trusts. Demand is being driven by cloud adoption and the AI build-out, with the APAC development pipeline at record levels. Scarcity of high-quality, well-located capacity supports premium valuations for the established names.

The differentiators are geography (Singapore has a moratorium-constrained, supply-tight market), tenant concentration (a few hyperscalers can dominate income), power availability, lease structure and — for the USD-reporting trusts — currency. A newly listed data-centre trust will also show an annualised, partial-year distribution, so read its yield with that caveat.

Data Centre REITs — questions

Are data centre REITs a good way to invest in AI?
Data-centre trusts own the physical infrastructure that cloud and AI workloads run on, so they offer indirect, income-paying exposure to that demand. The trade-offs are premium valuations, tenant concentration and power/supply constraints — compare the names on the screen and dig into tenant mix in the brief.

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