The Business Times
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BROKERS’ TAKE

UOBKH says data centres are ‘sheltered’ from reciprocal tariffs, names its top Reit picks

These include Digital Core Reit, Keppel Data Centre Reit and Mapletree Industrial Trust; all are assigned a ‘buy’ rating

Summarise
Therese Soh

Therese Soh

Published Tue, Apr 15, 2025 · 11:22 AM
    • Digital Core Reit's data centre in Osaka. UOB Kay Hian believes the advent of new reasoning AI models will drive the next wave of demand for data centres.
    • Digital Core Reit's data centre in Osaka. UOB Kay Hian believes the advent of new reasoning AI models will drive the next wave of demand for data centres. PHOTO: DIGITAL CORE REIT

    [SINGAPORE] UOB Kay Hian (UOBKH) predicts continued growth in demand for data centres over the next five years – despite a challenging environment resulting from tariff volatility.

    It maintained its “overweight” call on data centre real estate investment trusts (Reits), citing projections of rising global demand for data centres fuelled by the onset of next-generation, reasoning artificial intelligence (AI) models, alongside a potential supply shortage of AI-ready data centres. 

    Jonathan Koh, UOBKH analyst, said that the growing demand for data centres is poised to stay intact and shielded from damaging tariff effects. 

    Brokers' TakeData centresUOB Kay Hian

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