
NTT DC Reit: A Game-Changer for AI Investments on SGX!
2025-07-14
Author: Sarah
A Historic Listing for Investors
On July 14th, NTT DC Reit is set to make waves with its monumental listing, one of the largest initial public offerings (IPOs) for a data centre Reit in Asia. This event not only showcases the growing significance of data centres but also presents a golden opportunity for investors looking to capitalize on the booming world of artificial intelligence (AI).
An Attractive Market Capitalization
Debuting with a market cap of a staggering US$1 billion, NTT DC Reit will stand as Singapore’s third pure-play data centre Reit, joining the ranks of Digital Core Reit and Keppel DC Reit. Together, these S-Reits represent approximately S$9 billion in global data centre assets, offering investors unparalleled exposure to this rapidly developing sector.
Diverse Portfolio with Global Reach
The Reit’s impressive portfolio includes six high-value data centres: four located in the United States, along with one each in Austria and Singapore. Collectively valued at approximately US$1.6 billion, these facilities boast a design IT load of about 90.7 megawatts (MW) and an impressive occupancy rate of 94.3% as of December 2024.
Riding the AI Wave
In its prospectus, NTT DC Reit emphasizes the booming global data centre market, which is projected to see commissioned power surge from 18.2 gigawatts (GW) in 2020 to an astonishing 49.1 GW by 2024. This explosive growth, expected to continue at a double-digit rate until 2027, is fueled by the explosion of cloud computing and the rapid advancement of AI technologies.
Lucrative Returns on Investment
With a unit offer price of US$1, NTT DC Reit is forecasted to deliver a remarkable annualized distribution yield of 7.5% for the first nine months of FY2026—surpassing yields from other data centre S-Reits.
Strong Competitors in the Field
Currently, Keppel DC Reit reigns as the largest pure-play data centre Reit in Singapore, managing S$4.9 billion in assets across 24 data centres in 10 countries. Their recent Q1 2025 report shows a robust 22.6% year-on-year gross revenue growth. Meanwhile, Digital Core Reit also shines with a 79.9% revenue increase, managing US$1.7 billion across 11 data centres.
Rising Trends in Data Centre Development
The landscape is bustling with other players as well, like Mapletree Industrial Trust, which announced a 1% increase in distribution per unit (DPU) for FY2025, primarily driven by successful new leases and renewals. There’s also CapitaLand Ascendas Reit, eyeing strategic acquisitions to boost its data centre assets.
Invest in the Future—Don’t Miss Out!
As AI continues to reshape industries, NTT DC Reit's IPO provides a unique opportunity for savvy investors to tap into the data-driven future. Don’t miss your chance to be part of this incredible growth story on the SGX!