The following is a response from the organisers of REITs Symposium 2020:
Data centres are highly specialised property assets and REITs with pure data centre assets are rare globally, with Keppel DC REIT being the only one listed on SGX. Investors sometime put a scarcity premium on such stocks.
Keppel DC REIT was the top performing REIT in 2020 YTD to 25 Sep (+44.3% total returns), adding on to its +66% total returns in 2019), driven by data centre demands. Aside from KDC REIT, other REITs with data centre assets have also been among top 10 performers in 2020 YTD - MINT (+28.0%), AREIT (+12.9%).
COVID-19 has resulted in behaviour changes and greater digital adoption, which could boost the demand for data centres. Even prior to COVID-19, the total market size for Asia Pacific co-location data centres is forecast to be around US$28 billion by 2024 (report from Cushman & Wakefield).
However, concerns over climate impacts of data centres have been in focus recently. For e.g. Singapore authorities developed a Green Mark for Data Centres Scheme- a dedicated green building rating to encourage the adoption of energy-efficient design, operation and management of data centres.
The following is a response from the organisers of REITs Symposium 2020:
Data centres are highly specialised property assets and REITs with pure data centre assets are rare globally, with Keppel DC REIT being the only one listed on SGX. Investors sometime put a scarcity premium on such stocks.
Keppel DC REIT was the top performing REIT in 2020 YTD to 25 Sep (+44.3% total returns), adding on to its +66% total returns in 2019), driven by data centre demands. Aside from KDC REIT, other REITs with data centre assets have also been among top 10 performers in 2020 YTD - MINT (+28.0%), AREIT (+12.9%).
COVID-19 has resulted in behaviour changes and greater digital adoption, which could boost the demand for data centres. Even prior to COVID-19, the total market size for Asia Pacific co-location data centres is forecast to be around US$28 billion by 2024 (report from Cushman & Wakefield).
However, concerns over climate impacts of data centres have been in focus recently. For e.g. Singapore authorities developed a Green Mark for Data Centres Scheme- a dedicated green building rating to encourage the adoption of energy-efficient design, operation and management of data centres.