Data centre S-Reits power ahead on AI and cloud growth
Data centre S-Reits in Singapore have reported strong operating results in their latest business updates, with flat to higher distributions amid robust demand from cloud and artificial intelligence. Industry analysts highlight a broadly positive sector outlook driven by rapid AI adoption and ongoing digitalisation. The global data centre sector is expected to expand at a 14 percent compound annual growth rate through 2030, with nearly 100 Gigawatts of new data centres added between 2026 and 2030 to double global capacity.
Keppel DC Reit saw DPU rise 11.3 percent year-on-year in H1 2026, driven by positive reversions, escalations, and higher effective interests in Keppel DC Singapore 3 and 4. The portfolio achieved a rental reversion of around 10 percent for H1 2026, with occupancy standing at 92.5 percent, excluding the Cardiff Data Centre lease expiry.
Digital Core Reit maintained a high DPU for H1 2026 despite lower net property income, with new and renewal leases representing $5 million of annualised rent and strong cash rental reversions of 25 percent. NTT DC Reit recorded positive leasing momentum post-IPO, with occupancy rising to 95.9 percent following expansions in the US and Singapore.
The Reit is targeting a change in management fee structure by Q3 FY2026/27 to enhance alignment with unitholders.
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