NTT Data eyes asset injections into Singapore Reit to fund Asia’s AI push

[SINGAPORE] Global systems integrator NTT Data is looking to inject more of its global data centres into its Singapore-listed NTT DC Real Estate Investment Trust (Reit), as it ramps up its artificial intelligence (AI) expansion in Asia.

NTT Data chief executive officer Abhijit Dubey said the pure-play data centre Reit was designed to recycle capital by maximising value from stable assets such as data centres, and then deploying the proceeds into new ones.

“The intent has always been for (the Reit) to be an evergreen vehicle,” he told The Business Times in an exclusive interview. He did not specify which assets could be injected.

The group deploys about US$3.5 billion in capital to maintain its global digital infrastructure, he added.

The Reit holds six assets in its portfolio in the United States, Austria and Singapore, and the group’s global data centre division operates more than 160 facilities in more than 20 countries.

The Reit’s listing in July last year – the largest Reit IPO on the Singapore Exchange in a decade – marked “just the beginning” of NTT Data’s plan to accelerate capital recycling, said Dubey.

Singapore leads regional outperformance

The group is targeting “high-single-digit growth” for its business in 2026, and Dubey expects Asia to outperform global expectations, with Singapore leading the charge.

He placed Singapore among the group’s “top 10” global markets in terms of economic contribution and financial potential, citing its long operating history in the Republic.

“We have a sizeable, scaled and fairly healthy business (in Singapore),” he added.

Growth is driven by both public- and private-sector investment in AI, as Singapore-based companies expand across South-east Asia.

“Given our footprint in every single country we can support, we have a unique ability to support that kind of an expansion,” he said.

That said, since its Singapore IPO listing at US$1 a unit, prices of the Reit have fallen about 9 per cent to date.

In its nine-month business update in February, the Reit manager missed its adjusted IPO forecasted net property income by 0.6 per cent, citing lower occupancy and softer power revenue – although this was partially offset by higher tenant fit-out revenue and positive foreign exchange impact.

Value proposition

Dubey said that NTT Data differentiates itself from the rest by offering end-to-end capabilities, from digital infrastructure to consultancy services.

Such an approach enables NTT Data to compete in terms of both pricing and time to market, he noted.

As the adoption of AI picks up pace, NTT Data has begun upgrading its digital infrastructure – such as by making its data centres AI-ready – so that its customers can enter the market more quickly.

However, digital infrastructure remains a key constraint.

“There are many bottlenecks to scaling the adoption of AI, but one of the biggest ones is that the infrastructure is not AI-ready,” Dubey said.

He warned that competitors that have yet to beef up their infrastructure would face “a pretty significant shift” in their business models, given the capital-intensive nature of the exercise.

AI to reshape jobs

On the labour front, Dubey was more measured on AI-driven job displacement.

He does not expect immediate job losses, but expects disruption to unfold in the next five years. During this transition, he expects a high level of unemployment stemming from a lack of readiness by governments worldwide.

However, he expects new jobs to be created with a systemic overhaul of the education system, and for the job market to stabilise after 25 years.

Dubey identified employees in white-collar jobs and middle management to be at the highest risk of being displaced by other employees who use AI effectively.

“I find young graduates to be some of the best, because they are truly AI-native,” he said.

Against this backdrop, he expects a “decoupling of revenue growth from headcount growth”, noting that historically, in the IT services industry, revenue growth has typically been tied to headcount growth.

“Being AI-native with the curiosity mindset – the mindset to learn is actually what we aspire to have,” he said.