--- title: "Data centre S-Reits stay resilient on AI tailwinds" description: "Pure-play data centre S-Reits in Singapore, including Keppel DC Reit, Digital Core Reit, and NTT DC Reit, have shown strong financial performance due to high occupancy and rental growth driven by AI a" type: "news" locale: "en" url: "https://longbridge.com/en/news/276528398.md" published_at: "2026-02-22T06:31:46.000Z" --- # Data centre S-Reits stay resilient on AI tailwinds > Pure-play data centre S-Reits in Singapore, including Keppel DC Reit, Digital Core Reit, and NTT DC Reit, have shown strong financial performance due to high occupancy and rental growth driven by AI and cloud adoption. Keppel DC Reit reported a 55.2% increase in distributable income and a 9.8% rise in DPU, while Digital Core Reit and NTT DC Reit also maintained stable performances. Analysts have given 'buy' ratings on these Reits, citing strong demand and growth potential in the data centre sector. \[SINGAPORE\] Pure-play data centre (DC) real estate investment trusts in Singapore (S-Reits) have delivered resilient financial performance in their latest results ended December, with high occupancy and strong rental reversion amid cloud and artificial intelligence (AI) adoption. The three pure-play DC S-Reits – Keppel DC Reit, Digital Core Reit and NTT DC Reit – also saw stronger distributable income in the latest reporting period, on the back of higher revenue. CBRE noted in a report this month that forecasts for aggregate hyperscale capital expenditure in 2026 are north of US$400 billion globally, with the likes of Google, AWS, Microsoft and Meta committed to scaling up AI infrastructure. It added that robust demand for both co-location and hyperscale DCs will continue to drive strong investor interest in 2026. Keppel DC Reit delivered a strong performance in FY2025, with distributable income growing 55.2 per cent year on year, while distribution per unit (DPU) rose 9.8 per cent to a record S$0.10381. This came on the back of 42.2 per cent growth in gross revenue, driven by S$1.1 billion of accretive acquisitions in Tokyo and Singapore, as well as higher contributions from contract renewals and escalations. The Reit launched a preferential offering last September to raise S$404.5 million to partially finance the acquisition of a Tokyo Data Centre. Keppel DC Reit’s rental income from hyperscalers rose to 69.3 per cent as at end-December 2025, from 61.1 per cent a year ago. It also saw strong rental reversion of 45 per cent for the year and portfolio occupancy of 95.8 per cent. In terms of outlook, Keppel DC Reit’s manager noted that data centre growth will be fuelled by continued cloud adoption, rapid digitalisation and the scaling of AI workloads, and megatrends such as cloudification and agentic AI will support its efforts to create sustainable, long-term value for unitholders. DBS Group Research analyst Dale Lai noted that Keppel DC Reit’s earnings visibility will be supported by its high occupancy and weighted average lease expiry (WALE) of 6.7 years, while tailwinds from falling interest rates are expected to support lower financing costs. However, earnings growth may be partially offset by impending divestments, and a key swing factor would be how quickly capital from divestments can be recycled. He has a “buy” rating on the Reit with a S$2.60 target price. DBS Group Research also has “buy” ratings on NTT DC Reit and Digital Core Reit with target prices of US$1.20 and US$0.70, respectively. Lai noted that Digital Core Reit has pipeline assets from its sponsor valued at more than US$15 billion, allowing it to potentially grow into the largest pure-play DC S-Reit. “Its healthy debt headroom provides it the financial flexibility to embark on further accretive acquisitions. We believe that once markets become more conducive for further acquisitions, Digital Core Reit will be able to grow further,” he said. Digital Core Reit reported stable DPU for FY2025, while distributable income grew 1.9 per cent, with its manager noting that favourable fundamentals have resulted in robust new and renewal leasing volume. During the year, the Reit signed leases representing US$26 million of annualised rental revenue, with 31 per cent cash rental reversions. The Reit reached a 10-year agreement with an investment-grade global cloud service provider to occupy its entire facility at Linton Hall in Virginia, at a 35 per cent increase over previous net rent. Meanwhile, NTT DC Reit – which listed on the SGX mainboard in July 2025 – reported stable performance in line with its initial public offering (IPO) forecasts. The Reit had nine-month revenue of US$106 million, up 1.7 per cent from its adjusted IPO forecast, while distributable income was up 0.4 per cent to US$36.3 million. The manager noted that leasing performance was driven by strong demand, with committed portfolio occupancy of 97.3 per cent, and 9.2 per cent rent reversion. The Reit is in advanced negotiations with a related-party tenant at its SG1 DC, with expectations of achieving meaningful rent reversion. NTT DC Reit has also been in discussions with its sponsor on a potential management fee structure change to enhance alignment with unitholders’ interests, with implementation targeted by the first half of FY2026/2027. Retail investors have been net buyers of the three DC S-REITs with close to S$40 million net inflows for the year to Feb 19. **The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit** ***sgx.com/research-education/sectors*** **for the S-Reits & Property Trusts Chartbook.** ### Related Stocks - [NTDU.SG - NTT DC REIT USD](https://longbridge.com/en/quote/NTDU.SG.md) - [DCRU.SG - DigiCore Reit USD](https://longbridge.com/en/quote/DCRU.SG.md) - [AJBU.SG - Keppel DC Reit](https://longbridge.com/en/quote/AJBU.SG.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 分析师表示，政府推动人工智能有望激发对 one-north 科技中心的兴趣 | 新加坡在人工智能（AI）领域的推动将增强对高科技工业空间的兴趣，特别是在一北商业园区。总理劳伦斯·黄宣布了一系列加速 AI 采用的举措，包括成立国家人工智能委员会和建设更大的 AI 园区。分析师预计这将有利于高规格工业开发，并刺激老旧园区的 | [Link](https://longbridge.com/en/news/275897338.md) | | 用 AI 模拟新加坡教师 随时随地帮学生加强数学能力 \| 联合早报网 | WizzTutor 联合创办人徐锦泉和张健伦利用人工智能技术创建了一个在线教育平台，旨在帮助学生随时随地提高数学能力。徐锦泉的创意源于他作为教师时发现学生深夜仍在学习的现象。WizzTutor 提供便捷的在线服务，学生只需使用 iPad 或 | [Link](https://longbridge.com/en/news/276220565.md) | | 渣打银行首次为本地公司设 ESG 挂钩现金账户 客户为数据中心运营商 STT GDC \| 联合早报网 | 新加坡渣打银行首次为新科电信媒体全球数据中心公司（STT GDC）设立与环境、社会和治理（ESG）挂钩的现金账户。这是该银行在本区域注册公司设立的第一个此类账户，旨在将可持续发展绩效与现金余额回报挂钩，奖励客户在实现 ESG 目标方面的进展 | [Link](https://longbridge.com/en/news/276324760.md) | | 爱尔兰人对人工智能表现出喜爱，而日本则不太热衷 | 爱尔兰人对人工智能产生了浓厚的兴趣，而日本则不太如此 | [Link](https://longbridge.com/en/news/276160309.md) | | 亚马逊年度营收首超沃尔玛，零售双雄加码 AI 竞赛 | 亚马逊取代沃尔玛，成为年营收最高的公司。沃尔玛周四公布，其最近一个财年的年度营收为 7132 亿美元，这略低于亚马逊的 7169 亿美元。两家公司在人工智能领域采取了不同的策略：亚马逊大幅加大了对人工智能的投资，而沃尔玛则更依赖技术合作伙伴 | [Link](https://longbridge.com/en/news/276384959.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.