Three factors that bode well for Keppel DC REIT in 2018

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The proliferation of smartphones, cloud computing, and rich media is changing our lifestyles and as a result, there is rapid growth in demand for data centre services.

This is especially so in the Asia-Pacific region, where smartphone penetration is expected to reach 66% by 2020, according to PwC.

A report issued by the accounting firm earlier in 2017 also indicates that Asia-Pacific’s data centre services market size will exceed that of the European market by 2021.

The region’s data centre services market size in 2016 was estimated to have been worth USD12 billion, and this is expected to grow by 27% per annum henceforth.

These factors bode well for owners of data centres such as Keppel DC REIT, which currently has a portfolio of 14 data centres across eight countries.

However there are other reasons why units of the REIT are expected to do well in 2018.

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About Author

Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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