Very good analysis and very insightful video. What is your take on the rise of AI and demand of Keppel Data Center? What is the barrier of entry for more data center coming online?
The growth of AI increases the demand for data centres. The main barriers to entry are the significant capital expenditure required, the technical expertise needed to operate the centre securely, and the challenge of finding safe locations with reliable internet connectivity.
how data center handle customers that do not host their infra but move to the clouds providers(Microsoft, google, aws..etc)? in this case, all these cloud providers are competitors of data center, because these providers run their own data center. unless the data center is housing the cloud providers...
@@TheFifthPersonChannel what if cloud providers build their own data center? which i believed they already did, and isnt this considers competitors for Keppel DC REIT?
Yes, cloud providers also build their own data centres. But the key consideration as a REIT is whether KDC is operating in geographic markets where there is strong demand but a tight supply of data centres. For example, if a cloud provider wants a data centre in Singapore (due to its safe location, lack of natural disasters, reliable power generation, global internet connectivity, etc.), they can't just build one whenever they want.
Video mentioned there's over supply of DC in Malaysia. News yesterday said JB building more DC for a US giant. If there's over supply, why do they need to build?
It's like playing Monopoly. It's cheap to build along the Old Kent Road and Whitechapel, but very expensive in Mayfair and Park Lane. Perhaps they want something quasi-industrial to go with their empty condos?
Singapore has a limited supply of data centers due to a previous moratorium. However, new supply won't come online until 2025, leading to an overflow of business to Johor Bahru. KDC's Malaysian data centre operates in Cyberjaya which has a vacancy rate exceeding 20%, which poses a challenge for tenant leasing. theedgemalaysia.com/node/688314 futuresoutheastasia.com/bad-urban-design-cyberjaya/
Yes, big tech can also build their own data centres. The key consideration as a REIT is whether KDC is operating in geographic markets where there is strong demand but a tight supply of data centres. For example, if a cloud provider wants a data centre in Singapore (due to its safe location, lack of natural disasters, reliable power generation, global internet connectivity, etc.), they can't just build one whenever they want.
As always, very useful analysis. Thanks so much!
You're most welcome!
Very informative.Thanks for sharing.🎉
Glad it was helpful!
Ty, u guys should be the best proxies for AGM. Lets hope this goes down to 1.60 again soon 🙂
Thanks for sharing this. Looking forward to more agm sharing and ur thoughts since I have no time to attend 😅
Any time!
Can u do a video on AEM?
Very good analysis and very insightful video. What is your take on the rise of AI and demand of Keppel Data Center? What is the barrier of entry for more data center coming online?
The growth of AI increases the demand for data centres. The main barriers to entry are the significant capital expenditure required, the technical expertise needed to operate the centre securely, and the challenge of finding safe locations with reliable internet connectivity.
Thanks for the video. Very informative 😊
Glad it was helpful!
Very good vídeo fellas. Props to rusmin
Thank you so much!
how data center handle customers that do not host their infra but move to the clouds providers(Microsoft, google, aws..etc)?
in this case, all these cloud providers are competitors of data center, because these providers run their own data center.
unless the data center is housing the cloud providers...
Yes, data centres also count large cloud providers as their tenants.
@@TheFifthPersonChannel what if cloud providers build their own data center? which i believed they already did, and isnt this considers competitors for Keppel DC REIT?
Yes, cloud providers also build their own data centres. But the key consideration as a REIT is whether KDC is operating in geographic markets where there is strong demand but a tight supply of data centres. For example, if a cloud provider wants a data centre in Singapore (due to its safe location, lack of natural disasters, reliable power generation, global internet connectivity, etc.), they can't just build one whenever they want.
FIfth Person didnt attend today REITs at Suntec city ?
Video mentioned there's over supply of DC in Malaysia. News yesterday said JB building more DC for a US giant. If there's over supply, why do they need to build?
It's like playing Monopoly. It's cheap to build along the Old Kent Road and Whitechapel, but very expensive in Mayfair and Park Lane. Perhaps they want something quasi-industrial to go with their empty condos?
Singapore has a limited supply of data centers due to a previous moratorium. However, new supply won't come online until 2025, leading to an overflow of business to Johor Bahru. KDC's Malaysian data centre operates in Cyberjaya which has a vacancy rate exceeding 20%, which poses a challenge for tenant leasing.
theedgemalaysia.com/node/688314
futuresoutheastasia.com/bad-urban-design-cyberjaya/
Base on what u reply above, we don’t have concerns of competition from Johore, right ?
Yes, Johor will eat some of that demand.
Great work
Thanks!
Excellent. Very useful. Not sure how I missed you at the AGM Rusmin.
Thank you! Maybe next time!
What is Kep DC fair value price assuming zero value for Guangdong assets (total write-off)
Hi Jonathan, we mention this in the video
Does it makes sense to divest the Guangdong and Malaysia data centres?
Only if there is a willing buyer at the right price
can buy or not ?
Thank you for this video. Found out the possible reason for ex-CEO to leave Keppel DC. Maybe you could do a deep dive into FLCT now 😅
Haha. We'll consider it!
what about foreign currency drag?
55% of KDC's portfolio is based in Singapore, and foreign income is progressively hedged to reduce volatility in distributions.
Actually all the big techs build their own DC. So actually when companies are moving from on-prem to cloud, DCs will lose tenant
Yes, big tech can also build their own data centres. The key consideration as a REIT is whether KDC is operating in geographic markets where there is strong demand but a tight supply of data centres. For example, if a cloud provider wants a data centre in Singapore (due to its safe location, lack of natural disasters, reliable power generation, global internet connectivity, etc.), they can't just build one whenever they want.
😊😊@@TheFifthPersonChannel
Poor management just a beta play and yet screw up on tenant risk management.
A lot of ifs. No thanks. Better options without the ifs out there.