Singtel Weighs REIT to Fund Data Centre and AI Infrastructure Build-Out
Source: Data Center Dynamics
Singtel is considering setting up a publicly listed real estate investment trust to fund its growing data centre and AI cloud investments, as the telco's capital expenditure rises to S$3 billion in FY2027. The move would follow other major data centre operators like Digital Realty and GDS in spinning off a REIT for stabilised assets.
Singtel is exploring the creation of a publicly listed data centre REIT as a long-term capital lever to fund its growing AI cloud and infrastructure investments. The telco disclosed the plan in its 2026 annual report, citing rising capital expenditure from S$2.5 billion last year to an expected S$3 billion in FY2027, driven largely by its data centre and AI build-out.
Under the proposal, Singtel would spin off stabilised data centre assets into a separate investment vehicle, following a pattern already established by Digital Realty, GDS, and NTT — all of which operate data centre REITs. The telco also said it would explore external private capital sources and project-level debt alongside the REIT option. The strategy comes as Singtel's Nxera data centre unit targets expanding total capacity from 200MW to 400MW, with facilities under development across Southeast Asia.
The Singtel REIT consideration slots into a broader wave of data centre financing innovation in Singapore. Blackstone is setting up its own data centre REIT, AirTrunk has reportedly explored a Singapore-listed REIT, and KKR — already a 20% stakeholder in Singtel's data centre business — is working with the telco on the full acquisition of ST Telemedia Global Data Centres. The cumulative effect is a maturing capital market for AI infrastructure financing in the region.
Why it matters for Singapore: Singtel's REIT plan signals that Singapore's data centre industry is entering a new phase of capital sophistication. As AI demand pushes build-out costs higher, operators need permanent, scalable funding pools rather than project-level debt. A successful Singtel REIT IPO would not only unlock capital for the telco's expansion but also deepen Singapore's position as a hub for data centre finance and infrastructure investment in Asia.