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Data centre Reits could head for IPO on SGX as conditions turn favourable

Rising enthusiasm for AI, availability of cheaper financing due to lower interest rates among reasons cited by analysts

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Yong Jun Yuan

Yong Jun Yuan

Published Mon, Nov 18, 2024 · 05:00 AM
    • Data centre assets have been appealing to investors in recent years for their positive rental reversions as supply remains tight.
    • Data centre assets have been appealing to investors in recent years for their positive rental reversions as supply remains tight. PHOTO: BT FILE

    THE data centre race is heating up, driven by rising interest in artificial intelligence (AI). And Singapore’s equity market could be a beneficiary, as operators look to the city-state as an enticing potential location to securitise their data centre assets.

    Analysts that spoke to The Business Times said data centre operators might choose to list a real estate investment trust (Reit) as interest rates begin to fall.

    While the incoming Trump administration in the United States could introduce some uncertainty regarding interest rate cuts, Phillip Securities Research senior research analyst Darren Chan still expects there to be three cuts made in 2025.

    Data centresSingapore REITs

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