This quote shows you exactly why NTT chose Singapore for its massive $864 million data center IPO. Singapore’s market reform package from February 2025 is working according to plan.
The 20% tax rebate means one thing: serious savings. Companies that have market caps over S$1 billion can save up to an astonishing S$6 million. NTT wants up to $864 million in data centre REIT’s Singapore IPO, according to a term sheet. For NTT’s $1.08 billion IPO, this rebate gives them a serious financial incentive. At the same time, it also proves that Singapore means business about competing for quality listings.
Singapore’s S$5 billion domestic investment program isn’t just about a simple tax break. It actually creates market liquidity that makes institutional investors more comfortable participating in future offerings. This builds encouragement for more companies to list.
The timing couldn’t be better for data centers. McKinsey estimates that growing data center infrastructure means more than a trillion dollars in investment. AI and cloud computing are magnets to explosive demand. Microsoft alone is spending $80 billion in fiscal 2025 to expand its data centers.
This huge demand explains why NTT can offer a 7 to 7.5 percent distribution yield and still attract investors. Regular infrastructure REITs usually offer lower yields but data center REITs have premium pricing because they’re the key to the door of digital transformation.
Taking one good look at Singapore’s strategy should tell you that it’s working. The exchange saw IPO proceeds multiply five times in the first half of 2025 compared to last year. Chinese companies are looking at Singapore listings to expand markets amid trade tensions. Even Australia’s ASX is responding with its own reforms to stay competitive.
Singapore is building itself as Asia’s go-to hub for technology infrastructure funding, especially as Hong Kong faces ongoing challenges. More reforms are planned for the second half of 2025 which are meant to build systematic advantages which in turn could change how Asian tech companies raise capital.
What makes this even more significant is as the third largest data center provider worldwide, NTT operates over 150 data centers in more than 20 countries. The company has been expanding aggressively, opening 10 new data centers across North America, EMEA and APAC and adding more than 370MW of new IT capacity in the past year alone. NTT recently secured land across seven strategic markets to support nearly a gigawatt of planned capacity. This tells you how growth optimized their strategy is, and how taking a shot at a sudden opening can take you places.
“Singapore announced on Friday a set of measures to rejuvenate its equities market, including a 20% tax rebate for primary listings and a S$5 billion ($3.74 billion) program that focuses on investing in domestic stocks.”