0506 GMT - The selloff in Singapore REITs with significant data center exposure following DeepSeek's release of its open-source AI model appears overdone and unjustified, according to Citi Research. Analyst Brandon Lee says AI adoption is likely to accelerate if cheaper models or lower costs become the norm, which would drive greater demand for data center space and capacity. Rising demand for data centers is also heavily driven by cloud computing, with AI only recently becoming a key factor, Lee notes. In Singapore, data center demand is primarily driven by AI inference workloads, which rely less on the AI GPUs used for model-training workloads, he says. Citi views the weakness in Keppel DC REIT, Digital Core REIT and Mapletree Industrial Trust as an opportunity to accumulate, reiterating its buy rating on all three. (farah.elias@wsj.com)
(END) Dow Jones Newswires
January 30, 2025 00:06 ET (05:06 GMT)
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