Keppel DC REIT limits long-term hyperscaler contracts to roughly 30 percent of its portfolio, with the remainder leased as shorter colocation agreements, a model that CEO Loh Hwee Long compares to the anchor-tenant structure of a shopping mall. The REIT's top client, an unnamed hyperscaler, contributed 43.5 percent of total rental income of $210.4 million in the first half of 2026, while the largest non-hyperscaler tenants contributed about 15 percent. On September 1, Keppel DC REIT announced the acquisition of two freehold colocation data centers in the Greater Tokyo area for approximately $1.4 billion, bringing its Japan assets to four. Loh identified Singapore, Japan, and South Korea as the REIT's key Tier 1 markets, citing high barriers to entry from land and power constraints, while noting that building a new data center in Japan can take five to seven years due to energy and construction challenges.
Keppel DC REIT's deliberate cap on hyperscaler exposure illustrates how data center operators are actively structuring tenant mixes to manage long-term yield risk, a consideration that will matter more as AI-driven demand gives colocation customers greater pricing leverage. The $1.4 billion Tokyo acquisition and the focus on supply-constrained markets in Asia show how capital is concentrating in locations where new competition is structurally difficult to add, which has direct implications for pricing power and rent growth in those regions.
An executive interview with Keppel DC REIT's CEO offering strategic insight into how the Singapore-based REIT operationalizes its data center portfolio is a distinctive market perspective from a major Asia-Pacific operator not covered in the already-published list.