The Business Times
business-time-50
BROKERS’ TAKE
·
SUBSCRIBERS

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
google-preferred-sourceAdd BT as a preferred source
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

    TRENDING NOW

    Household liabilities are growing faster than household assets, a shift that emerged in the fourth quarter of 2025 and continued through the first quarter of 2026.

    Singapore households’ net wealth up, but also taking on more debt such as home loans

    Ang Kiam Meng, group CEO and executive chairman of Jumbo Group, says the move to a bigger headquarters is necessary to future-proof the business.

    With new S$10 million HQ, Jumbo Group looks to Shanghai-focused China strategy, premium dining for growth

    Four projects housing 1,679 units will likely test buyer appetite in July.

    Up to 11 new condo projects with 3,550 units lined up for H2 launch as price ceilings emerge

    The departure of food manufacturing operations from Singapore may not necessarily be reason for concern.

    Yeo’s, Tiger Beer and now Gardenia – flight of food manufacturing from Singapore might be just as planned

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More