Nxera’s capacity is projected to climb from 62 megawatts (MW) to about 400MW in the medium term. It is also eyeing high-demand markets such as Japan and South Korea. DBS Group Research notes that Singtel’s recent entry into Japan in partnership with Hitachi could add 100MW of new data centre capacity on top of its 400MW target by 2028.
DBS Group Research and Maybank Securities have reiterated their “buy” calls on Singapore Telecommunications (Singtel) with target prices of $5.04 and $4.30, respectively. The analysts say Singtel’s key business units either remain resilient or are showing clear signs of recovery.
Maybank Securities analyst Hussaini Saifee identified Digital InfraCo as the most compelling growth engine within Singtel’s core portfolio. The standalone infrastructure unit’s data centre arm, Nxera, is expected to deliver 20% revenue CAGR over the next three years, with ebitda nearly doubling in the same period.
