SG Property Intelligence KEP’s 25MW Singapore floating data center is fully committed

Research evidence excerpt

SG Property Intelligence KEP’s 25MW Singapore floating data center is fully committed

J P M O R G A N Asia Pacific Equity Research

08 June 2026

SG Property Intelligence

KEP’s 25MW Singapore floating data center is fully

committed

Singapore/ASEAN Property and

REITs

KEP’s 25MW Singapore floating data center is fully committed to a global AC Terence M Khi

hyperscaler, with construction having already commenced and the facility scheduled

(65) 6882-1518

to go live in 2028. Separately, Singapore data centers remain demand-led across terence.ml.khi@jpmorgan.com

colocation and hyperscale, but capacity and power constraints are pushing spillover AC Mervin Song, CFA

requirements to Johor, Kuala Lumpur and Bangkok. New supply is tightly controlled (65) 6882-7829

via DC-CFA awards and geographic planning, with Jurong Island the main designated mervin.song@jpmorgan.com

cluster, keeping occupancy above 95% and reinforcing a landlord-favoured market J.P. Morgan Securities Singapore Private Limited/

J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

where stronger-credit customers secure space more easily. Legacy stock AI-readiness Morgan Broking (Hong Kong) Limited

is a rising issue, creating retrofit and efficiency upgrade opportunities, while rents are

likely stable to slightly higher through 2026 given long delivery lead times.

Investment activity is muted as assets are tightly held, with limited recent deals mainly

intra-platform or REIT-related, and indicative cap rates at around 5.25% to 6.50%.

(Source: CBRE)

Springtime hiring shows some pep. The May jobs report was solid. The 172,000

increase in nonfarm employment easily beat expectations, was reasonably broad-

based, and came along with upward revisions to prior months’ estimates, leaving the