Development in Singapore’s data centre sector saw a sluggish pace in the first half of 2025, according to a report from Cushman and Wakefield. Ongoing restrictions on new developments have kept key indicators largely unchanged, echoing trends from the latter half of 2024. However, this stagnation has not dampened investor enthusiasm, with capital markets buzzing and activity remaining vibrant.
Significant financial maneuvers have emerged from operators in the space. Princeton Digital Group (PDG) has made headlines by securing a definitive agreement with Stonepeak for a staggering US$1.3 billion preferred equity investment. This follows PDG’s impressive US$1.2 billion debt financing. Collectively, PDG accrued US$2.5 billion in the first half of 2025, fueling its ambitious expansion plans across the Asia Pacific region.
Meanwhile, Partners Group continues to make waves by acquiring GreenSquareDC in Australia and Digital Halo from ARCH Capital. The firm intends to inject approximately US$400 million into the venture while ARCH Capital retains a minority stake. This initiative paves the way for transforming Digital Halo into a robust 500MW data centre platform spanning the Asia Pacific.
In another move reflecting the shifting landscape, NTT Data announced its intent to list the NTT DC REIT on the Singapore Exchange. This portfolio consists of six operational data centres from the U.S., Austria, and Singapore, valued collectively at US$1.57 billion. With this innovative REIT, the company hopes to expedite its capital recovery cycle, setting the stage for future investments and sustainable growth.
Keppel, too, is making strides with the first close of its Keppel Data Centre Fund III, securing US$580 million from diverse global institutional players, including pension funds and sovereign wealth entities. The funds are earmarked for a suite of AI-ready hyperscale data centres positioned throughout the Asia Pacific, underscoring Keppel’s commitment to technological advancement.
Nxera has secured a noteworthy US$475.9 million green loan over five years to drive the development of its 58MW data centre in Tuas. This loan is backed by a consortium of major banks, including DBS and HSBC, and the facility is expected to launch in 2026. This financing underscores the growing trend of sustainable investments within the sector. Meanwhile, in a move that feels almost futuristic, Alibaba Cloud unveiled its AI Global Competence Centre (AIGCC) in Singapore, designed to serve as a collaborative hub for businesses and developers eager to harness advanced AI technologies. The centre aims to partner with academic institutions to cultivate a new generation of AI professionals, ensuring the region’s data expertise remains robust.
What has contributed to the subdued development activity in Singapore’s data centre sector?
Ongoing restrictions on new developments have hindered growth, resulting in key market indicators remaining mostly unchanged since late 2024.
How much capital did Princeton Digital Group raise in the first half of 2025?
Princeton Digital Group raised a total of US$2.5 billion, combining a US$1.2 billion debt financing with a US$1.3 billion preferred equity investment from Stonepeak.
What is the focus of Alibaba Cloud’s newly launched AI Global Competence Centre?
The AI Global Competence Centre aims to foster collaboration among businesses and developers on advanced AI models while partnering with universities to train professionals in the field.
