- Core hubs in Northern Virginia and Silicon Valley benefit from rising AI demand and average asking rents have increased 7% to US$174/kW/month across North America in 1H24. Our preferred BUYs are Digital Core REIT and Mapletree Industrial Trust for their focus on the US market.
- - Read this at SGinvestors.io -
AI propels growth for data centres.
- The launch of OpenAI’s ChatGPT in Nov 22 brought language-capable AI into the mainstream. The pervasive usage of AI and machine learning has the potential to sharply increase demand for data centres to house GPU servers and data storage.
- - Read this at SGinvestors.io -
Singapore is the most power-constrained data centre market in the world
- Singapore is the most power-constrained data centre market in the world with an extremely tight vacancy rate of 1.0%. We attribute the shortage to the government’s strict adherence to climate change commitments and the resultant 3-year moratorium on building of new data centres in 2019-22.
- The moratorium was only recently lifted but new supply is expected to come on stream from 2026 onwards. Thus, capacity is expected to remain tight with rents on an upward trend in 2H24 and 2025.
Singapore expanding data centre capacity by one third.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-09-27
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