Singtel Explores Data Center REIT to Fund AI and Cloud Expansion
July 3, 2026
Singtel Explores Data Center REIT to Fund AI and Cloud Expansion
Singaporean telecommunications giant Singtel is considering the creation of a publicly listed real estate investment trust (REIT) focused on data centers, a move that would provide a long-term capital vehicle to support its growing investments in artificial intelligence and cloud infrastructure. The potential listing, disclosed in the company’s 2026 annual report, reflects a broader industry trend where major data center operators turn to REIT structures to unlock value from stabilized assets while financing future growth.
Singtel’s capital expenditure is expected to rise from S$2.5 billion (US$1.9 billion) last year to approximately S$3 billion (US$2.3 billion) in fiscal year 2027, driven largely by its data center and AI cloud investments. To fund this ramp-up, the telco said it will tap external private capital sources and project-level debt, but it also indicated that a publicly listed REIT is under active consideration. “We are also considering another capital lever – permanent capital pools that we can continuously tap for longer-term needs. This could be in the form of a public listing of a real estate investment trust, in which we can continue to inject assets,” the company stated in its annual report.
REITs are companies that own and often operate income-producing real estate, such as data centers, generating revenue through leasing space and collecting rent. Data center REITs, where all or most of the trust’s revenue comes from leasing data center properties, have become a popular vehicle for operators seeking patient capital. Major industry players including Digital Realty, GDS, PLDT, and NTT have previously spun off publicly listed REITs that hold stakes in their stabilized assets, and Blackstone-owned AirTrunk is reportedly pursuing a similar path. Blackstone is also establishing its own data center REIT.
Singtel continues to close several small legacy data centers in Singapore but still operates large facilities in the city-state through its Nxera unit. Nxera is also developing multiple facilities across Southeast Asia in partnership with local players and expects to grow its total capacity from 200 megawatts to 400 megawatts in the coming years. The telco, owned by Singaporean sovereign wealth fund Temasek Holdings, sold a 20 percent stake in its data center business to KKR in 2023. Singtel and KKR are also in the process of acquiring all of APAC data center firm ST Telemedia Global Data Centres (STT GDC) from Temasek-owned ST Telemedia.
It remains unclear whether any Singtel data center REIT would be seeded with its Nxera facilities, STT GDC data centers, or a mix of both. In the annual report, Singtel said the two data center firms will continue to operate separately post-acquisition. The potential REIT listing would provide Singtel with a permanent capital pool to support its aggressive build-out in the region, while offering investors exposure to the rapidly growing data center market in Southeast Asia.
Source: datacenterdynamics
