The AI investment story has largely centred on the companies supplying the technology — from advanced chipmakers to cloud platforms and software developers.

But there is another layer to the AI boom that is easy to overlook: the physical infrastructure required to run it.

Every AI model, cloud service and data-intensive application ultimately needs somewhere to operate. That means more data centres, more computing capacity, more power and increasingly sophisticated cooling and connectivity infrastructure.

For investors looking to participate in this structural trend without taking on the operational risks of running data centres themselves, Singapore’s REIT market offers two notable avenues: Keppel DC REIT (SGX: AJBU) and NTT DC REIT (SGX: NTDU).

The two REITs are riding the same broad data centre and AI infrastructure theme — but from very different starting points.

AI’s Next Bottleneck May Not Be Chips

The rapid adoption of generative AI is increasing demand for computing power at an unprecedented pace.

Training and running increasingly sophisticated AI models requires large clusters of high-performance processors, while AI applications are driving demand for cloud computing and data storage.

That creates a second-order opportunity.

The companies making the chips may capture the technology boom — but data centre owners provide the physical infrastructure that allows those chips to operate.

This is where data centre REITs come into the picture.

By owning and leasing data centre properties, REITs can potentially benefit from rising demand for capacity while leaving the day-to-day operation of the facilities to specialised tenants and operators.

For investors, the attraction is therefore twofold: exposure to a structural technology trend and the potential for recurring property income.

Two REITs, Two Ways to Play the Boom

Singapore’s listed market offers two prominent names in this space.

吉宝数据中心房地产投资信托 is the established incumbent, with more than a decade of operating history and a geographically diversified portfolio.

NTT DC REIT, meanwhile, is the newer entrant, having only listed on the SGX Mainboard in July 2025. It is backed by NTT Global Data Centers, one of the world’s major data centre operators.

Both stand to benefit from the long-term growth in data centre demand — but their investment cases are quite different.

Keppel DC REIT: The Established Infrastructure Play

Its portfolio is now worth approximately S$6.3 billion, comprising 25 properties across 10 countries, including Singapore, Australia, China and Europe.

Its scale and diversification give investors exposure to multiple data centre markets rather than a single geography.

Recent results also show continued income growth.

H1 2026 DPU rose 11% year-on-year to S$0.0571, supported by the full-period contribution from Tokyo Data Centre 3 and positive rent reversions.

Yet the market has not fully rewarded that growth.

The unit price has fallen nearly 7% over the past year, despite the double-digit increase in DPU.

That creates an interesting investment debate: is the market anticipating risks that have yet to show up in distributions, or has the share price fallen too far relative to the underlying income growth?

The risks to watch

Keppel DC REIT’s next phase of growth may be more challenging than its first.

Higher financing costs and elevated property yields have made acquisitions less immediately accretive, slowing the pace at which the REIT can expand through acquisitions.

There is also a specific issue in China.

Bluesea, the master lessee at its Guangdong data centres, had accumulated more than S$55 million in unpaid rent as of end-April 2026. Chip availability bottlenecks in China were cited as one contributing factor.

For investors, the key question is whether this issue stabilises or continues to affect distributable income.

NTT DC REIT: The New Growth Challenger

Listed on the SGX Mainboard in July 2025, NTT DC REIT is backed by NTT Global Data Centers, giving investors exposure to a portfolio linked to a major global data centre operator.

The portfolio is smaller than Keppel DC REIT’s, with approximately US$1.5 billion in appraised value 和 90.7 MW of design IT load.

Its assets span the US, Vienna and Singapore, with the portfolio comprising predominantly freehold properties.

Its maiden full-year results offered several encouraging signals.

NTT DC REIT delivered FY25/26 DPU of 5.56 US cents, beating its IPO forecast by 2.6%.

Portfolio occupancy stood at 95.9%, rising to 99.2% on a committed basis, including leases secured but not yet commenced as of 30 June 2026.

Rental reversions were also strong at +13.4% on renewed leases, while aggregate leverage improved to 29.2% from 31%.

For a relatively new listing, these metrics point to a portfolio with strong occupancy, rental growth and improving balance-sheet leverage.

But newer doesn’t necessarily mean lower risk

The trade-off is track record. NTT DC REIT has only been listed for a little over a year, meaning investors have limited evidence of how the portfolio will perform through a full property and interest-rate cycle.

Its strong sponsor backing is a potential advantage, but investors will still be watching to see whether that translates into sustained DPU growth over time.

AJBU vs NTDU: Which Data Centre Play Stands Out?

The differences become clearer when the key numbers are placed side by side.

Figures are shown in each REIT’s native currency and are not directly comparable without FX adjustment.

Based on Bloomberg consensus as of 1 September 2026, analysts see approximately 21.4% upside for Keppel DC REIT 和 35.1% for NTT DC REIT.

The higher implied upside for NTT DC REIT may partly reflect its status as a newer listing, where the market is still establishing a longer-term valuation and distribution track record.

Established Scale vs Emerging Growth

Ultimately, the choice between the two comes down to the type of exposure investors want.

吉宝数据中心房地产投资信托

The established play

• Larger S$6.3 billion portfolio
• 25 properties across 10 countries
• More than a decade of track record
• Demonstrated DPU growth
• Greater exposure to legacy portfolio issues

NTT DC REIT

The emerging growth play

• Newer, predominantly freehold portfolio
• Backed by NTT Global Data Centers
• 95.9% portfolio occupancy
• Strong +13.4% rental reversions
• Improving leverage
• Shorter public-market track record

In simple terms, Keppel offers scale and history, while NTT offers a newer portfolio and potentially greater growth optionality.

What Could Drive the Next Leg Higher?

The long-term AI infrastructure story remains the common denominator.

But for data centre REIT investors, several factors could determine who benefits most.

AI and cloud demand
Continued growth in AI workloads could drive demand for additional data centre capacity.

Rental growth
Limited data centre supply in key markets could support rental reversions and occupancy.

Power availability
Access to reliable electricity is increasingly becoming a critical constraint for new data centre development.

Financing costs
Lower interest rates could improve acquisition economics and reduce pressure on REIT distributions.

Sponsor execution
The ability to secure new assets and expand portfolios without excessive leverage could become a key differentiator.

The AI Trade Beyond the Chip

The AI investment story is becoming increasingly broad.

The first wave focused on chips and computing power.

The next phase may increasingly focus on the infrastructure needed to support that computing power.

For investors, Keppel DC REIT and NTT DC REIT offer two different ways to participate in this transition.

Keppel DC REIT brings scale, diversification and an established distribution history, but investors need to monitor its legacy portfolio challenges and financing environment.

NTT DC REIT offers a newer portfolio, strong sponsor backing and encouraging early operating metrics, but has yet to establish a track record through a complete market cycle.

As AI adoption accelerates, the opportunity may therefore extend beyond the companies building the chips to the companies owning the infrastructure that houses them.

The AI boom needs data centres. These two Singapore REITs offer investors a way to play that next layer of the story.

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