NTT Said to Secure Banks for $1B Singapore Data Centre REIT

Asia’s data centre boom could bring the Singapore Exchange (SGX) its biggest initial public offering (IPO) since 2021, as one of the world’s largest data centre providers is reportedly moving forward with plans for a real estate investment trust (REIT) offering in the IPO-hungry bourse.

Japan’s Nippon Telegraph & Telephone Corp (NTT) has enlisted Bank of America and UBS to help arrange a $1 billion data centre REIT listing in Singapore, sources told Reuters. Should NTT’s Singapore IPO materialise, with the report indicating that it could be on the way in the second half of 2025, it would rank as the largest debut on the SGX since 2021.

The move follows a Bloomberg report in September 2024 indicating NTT’s interest in an SGX listing. Should the data centre listing proceed, it would form part of what is expected to be a resurgence in real estate trust activity in Singapore.

The potential Singapore REIT for NTT, which already has a data centre trust on the Tokyo exchange, follows an expansion of the company’s digital infrastructure network in Southeast Asia over the past year.

Data Centre Titan

In its mid-term strategy announced in May 2023, NTT committed to investing at least JPY 1.5 trillion ($10 billion) into its data centre infrastructure through 2027. As part of this plan, NTT has been expanding aggressively in Southeast Asia over the past year.

NTT has yet to comment publicly on a potential listing and had not yet responded to questions from Mingtiandi by the time of publication.

In March 2024, the company announced on Linkedin that it had broken ground on a 12 megawatt data centre in Thailand, which is expected to go live this year. In May last year the company announced that it is building a new data centre in Jakarta, Indonesia which is expected to be completed by early 2026.

In August 2024, NTT invested $88 million to acquire a site in Johor, Malaysia from local developer Tropicana for a new data centre across the border from Singapore.

NTT describes itself as the third-largest data centre provider globally by revenue excluding Chinese operators, behind Equinix and Digital Realty. As of March 2024, Tokyo-based NTT’s data centre portfolio had a capacity of 1.3 gigawatts across more than 20 countries and regions.

REIT Hopes Revive

Given the current status of NTT’s preparations, a Singapore listing could be on the way within 2025.

“Once banks are appointed for an IPO, the timeline to market typically ranges from 6 to 12 months, depending on regulatory approvals, market conditions, and company readiness,” National University of Singapore professor and sustainable futures co-director PS Lee told Mingtiandi.

“In NTT’s case, they have appointed Bank of America and UBS for their data centre REIT listing in Singapore, with the IPO expected in the second half of 2025. Given the usual processes involved—including regulatory filings, investor roadshows, and final pricing—the listing could materialize by late 2025, assuming market conditions remain favorable,” he added.

NTT’s potential REIT listing is part of a growing interest in property trust offerings this year.

In an SGX disclosure last, Centurion Corporation announced that it is considering the launch of a REIT, with its portfolio comprising some of the developer’s student and worker housing assets.

Two weeks ago, the international arm of China’s largest data centre operator GDS announced its rebrand as DayOne, a move analysts view as likely tied to hopes for a potential REIT IPO in Singapore, or another jurisdiction.

In December 2024, Bloomberg reported that France’s Praemia REIM is also considering listing a healthcare REIT in Singapore.

Apart from Centurion, the reported sponsors of these potential REIT listings have yet to comment publicly on IPO plans.

Lee told Mingtiandi that several factors are contributing to a renewed focus on REITs including lower interest rates and increasing regulatory support from SGX.

“With only four IPOs in 2024 raising approximately $31 million, Singapore’s IPO market has been relatively subdued. If completed as planned, NTT’s IPO could serve as a much-needed catalyst for renewed market activity,” Lee said.