This week saw artificial intelligence infrastructure take centre stage with OpenAI and NVIDIA‘s (NASDAQ: NVDA) US$100 billion partnership announcement.
Speaking of deals, Keppel DC REIT (SGX: AJBU) proposed a S$707 million Japanese data centre acquisition.
In other REIT news, Centurion Accommodation REIT (SGX: 8C8U) made its public debut with its IPO being oversubscribed.
Finally, Singapore’s construction sector is set to shatter projections with demand approaching S$60 billion as mega-projects and lower interest rates driving growth, according to MayBank (KLSE: 1155).
OpenAI-NVIDIA’s US$100 billion AI Infrastructure Deal
OpenAI and NVIDIA announced a groundbreaking strategic partnership that will see the deployment of at least 10 gigawatts of NVIDIA systems for OpenAI’s next-generation AI infrastructure.
This massive undertaking represents millions of GPUs and marks one of the largest AI infrastructure commitments in history.
To support this deployment, NVIDIA intends to invest up to US$100 billion in OpenAI progressively as each gigawatt comes online.
The first gigawatt of NVIDIA systems is targeted for deployment in the second half of 2026 using NVIDIA’s Vera Rubin platform.
The partnership extends a decade-long collaboration between the two companies.
OpenAI CEO Sam Altman emphasised that “compute infrastructure will be the basis for the economy of the future” while NVIDIA CEO Jensen Huang described the investment as marking “the next leap forward — deploying 10 gigawatts to power the next era of intelligence.”
This strategic alliance complements OpenAI’s existing partnerships with Microsoft (NASDAQ: MSFT), Oracle (NASDAQ: ORCL), SoftBank, and Stargate partners.
Keppel DC REIT’s Second Japan Data Centre
Closer to home, Keppel DC REIT announced the acquisition of Japan’s Tokyo Data Centre 3 for S$707 million, a minor discount to its valuation.
The facility comes fully contracted to a leading global hyperscaler for 15 years with built-in annual rent escalation, offering the cash flow resilience which would make dividend investors smile.
On a pro forma basis (as if the acquisition had already happened), the purchase would have boosted FY2024’s distribution per unit (DPU) by 2.8% from S$0.09451 to S$0.09712.
To fund the purchase, Keppel DC REIT launched a non-renounceable preferential offering at S$2.24 per unit, with entitled unitholders offered 80 new units for every 1,000 units held.
Post-acquisition, the REIT’s portfolio will expand to 25 data centres across 10 markets with assets under management reaching S$5.7 billion.
Centurion Accommodation REIT’s IPO Oversubscribed
Centurion Accommodation REIT saw strong investor interest in its initial public offering (IPO), with its 262 million units being 16.6 times subscribed based on indications of interest and valid applications.
The REIT, which commenced trading at 2:00 pm on 25 September 2025, offered units at S$0.88 per unit through both international and Singapore public placements.
The international placement of around 245 million units attracted 16 times subscription, while the Singapore public offer of a little over 13.2 million units was about 30.9 times subscribed.
This overwhelming response reflects strong investor appetite for accommodation-focused REITs in the current market environment.
Joint chairmen of Centurion Corporation (SGX: OU8), David Loh and Han Seng Juan, joined in by acquiring 10 million and 6 million units, respectively.
Both Loh’s and Han’s deemed interests would reach over 746 million units each, assuming the over-allotment option is taken up.
Singapore’s Construction Boom to Hit S$60
Singapore’s construction sector is experiencing its strongest momentum since pre-pandemic days.
Maybank economists project total construction demand to reach nearly S$60 billion in 2025, significantly exceeding the Building and Construction Authority’s projection of between S$47 billion and S$53 billion.
This figure would represent a dramatic recovery from the pandemic years’ trough of just over S$20 billion and exceeds 2024’s total demand of just over S$44 billion.
Contracts awarded in the first half of 2025 have nearly reached S$28 billion, marking a 41% year-on-year increase.
Both public and private sector contracts are expected to contribute equally to the full-year tally.
The construction boom is being driven by mega-infrastructure developments including Changi Terminal 5, Tuas Mega Port, MRT Cross Island Line, the Deep Tunnel Sewerage System, and expansion of the Woodlands Checkpoint by five times.
To top it off, lower interest rates could make it more attractive for private developers to pursue residential land sales.
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Disclosure: The Smart Investor owns shares in Keppel DC REIT and Microsoft.
