A shortage of power and land in Northern Virginia and Silicon Valley has resulted in a recorded net absorption of 436.9MW and 62.4MW respectively, bringing vacancies to a low of 0.98% and 2.3%, he adds.
UOB Kay Hian’s (UOBKH) analyst Jonathan Koh maintains his “overweight” rating on the data centre Singapore REIT (S-REIT) subsector as he sees the sub-sector seeing its first year of positive growth in rents since 2017.
“According to CBRE Group (CBRE), asking rents across primary wholesale colocation markets increased 14.5% to US$137.90 ($184.33)/kW/month in 2022,” Koh writes.
