Data Centre ETF Singapore: Best Options for 2026 (VPNG & More)
How Singapore investors can tap the AI data centre boom via UCITS ETFs on the London Stock Exchange — tax-efficiently and estate-tax-free.
The best data centre ETF for Singapore investors in 2026 is the Global X Data Center REITs & Digital Infrastructure UCITS ETF (VPNG), listed on the London Stock Exchange. Ireland-domiciled and accumulating, it tracks the Solactive Data Center REITs & Digital Infrastructure Index across 26 holdings including Equinix, Digital Realty Trust, and American Tower. Singapore investors prefer it over US-listed alternatives for the lower 15% dividend withholding tax (vs 30%) and zero US estate tax exposure.
Not financial advice. All figures are for educational reference only. Data as at April 2026 unless noted.
Table of Contents
Contents — Click to expand
What Is Data Centre ETF Investing?
A data centre ETF is a thematic exchange-traded fund that invests in companies owning, operating, or providing infrastructure for digital data storage, processing, and transmission. These include data centre REITs (Real Estate Investment Trusts), tower operators, and digital infrastructure companies.
Unlike buying individual stocks such as Equinix or Digital Realty Trust, a data centre ETF gives Singapore investors diversified exposure across multiple operators, geographies, and sub-sectors — all in a single, cost-efficient vehicle. For Singapore-based investors, the most tax-efficient route is via UCITS ETFs listed on the London Stock Exchange (LSE), which offer the 15% Ireland–US dividend withholding tax rate and no US estate tax exposure on Singapore-domiciled holdings.
The primary UCITS data centre ETF available to Singapore investors on the LSE is the Global X Data Center REITs & Digital Infrastructure UCITS ETF, trading under ticker VPNG (GBP share class) or VPN (USD share class).
Why Data Centres Are Booming in 2026
The structural demand driving data centre growth is unlike any previous technology cycle. Three forces are converging in 2026 to make this one of the most compelling infrastructure themes for long-term investors.
1. AI compute demand is accelerating exponentially. Training and running large language models (LLMs) such as GPT-class and Gemini-class AI requires massive GPU cluster installations — each one consuming megawatts of power and requiring specialised cooling. According to industry forecasts, demand for AI-ready data centre capacity is growing at 33% per year between 2023 and 2030. AI factories are projected to expand from 7GW of power capacity at end of 2024 to over 15GW by end of 2025, with a further 75GW expected over the following decade.
2. The global data centre market is scaling rapidly. The worldwide data centre market was valued at approximately USD 300 billion in 2024 and is projected to reach USD 483 billion by 2029. This is not cyclical technology spending — it is infrastructure buildout, more akin to building power plants and highways than upgrading software licences.
3. Tight supply is driving pricing power. Construction timelines for hyperscale data centres run 18–36 months, power availability is constrained in key markets (particularly Singapore), and skilled labour is scarce. This supply-demand imbalance benefits owners of existing data centre real estate — precisely what a data centre ETF invests in.
For Singapore investors, this theme also has a local dimension: Singapore is one of the world’s most important data centre hubs, and domestic REITs like Keppel DC REIT and Mapletree Industrial Trust provide partial (though not pure) exposure to the trend. For broader, globally diversified data centre exposure, a UCITS ETF is the more efficient vehicle.
The Singapore Angle: Data Centres and Local REITs
Singapore punches far above its weight in global data centre infrastructure. The city-state hosts over 70 data centres, many operated by global hyperscalers (Microsoft, Google, AWS, Meta), and is the preferred APAC colocation hub for financial institutions and enterprises across Southeast Asia.
In April 2024, the Infocomm Media Development Authority (IMDA) announced plans to release at least 300MW of additional data centre capacity — the first new supply allocation since a de facto moratorium in 2019. A further 200MW or more is available for operators adopting green energy solutions. This is a significant catalyst for Singapore-based data centre operators.
Singapore’s domestic data centre REIT market is small but growing. The two primary S-REITs with data centre exposure are:
- Keppel DC REIT (SGX: AJBU) — Singapore’s largest pure-play data centre REIT, with 62.5% of asset value in Singapore. It recorded a 51% positive rental reversion in 1H 2025 and management guides for high-single to low-double digit reversions in 2026, underpinned by the ~1% vacancy rate in Singapore data centres. The Singapore AI data centre market is projected to grow at 10.41% CAGR from 2026 to 2031, reaching USD 1.47 billion.
- Mapletree Industrial Trust (SGX: ME8U) — Approximately 56% of MIT’s portfolio comprises data centres across the US, Japan, and Singapore. However, MIT has faced headwinds from rising US tenant vacancies, with some analysts flagging a potential 4–5% DPU dip over 2025–2026 from US asset softness.
Singapore investors who want exposure to S-REIT data centres alongside global data centre ETFs can hold a combination: Keppel DC REIT (SGX-listed, CPF-investable) for local yield plus VPNG on the LSE for global diversification. For more on Singapore REITs, see our guide to the best S-REITs in Singapore 2026.
Best Data Centre ETFs for Singapore Investors
There are only a handful of UCITS-compliant data centre and digital infrastructure ETFs available to Singapore investors via LSE brokers. Here is a comparison of the main options, ranked by thematic focus:
| ETF | LSE Ticker | TER | AUM | Holdings | Focus | Structure |
|---|---|---|---|---|---|---|
| Global X Data Center REITs & Digital Infra UCITS ETF | VPNG / VPN | 0.50% p.a. | ~USD 231M | 26 | Pure data centre REITs + digital infra | Accumulating |
| iShares Global Infrastructure UCITS ETF | IDIN / INFR | 0.65% p.a. | ~EUR 1,965M | 263 | Broad infrastructure (utilities, transport, comms) | Distributing |
Source: JustETF, Global X ETFs, iShares, April 2026
Our verdict: For investors specifically targeting the data centre and AI infrastructure theme, VPNG is the only UCITS-compliant pure-play option on the LSE. IDIN (iShares Global Infrastructure) is a much broader fund — with exposure to utilities, energy pipelines, and transport infrastructure — and is better suited to investors seeking broad infrastructure diversification rather than the data centre theme specifically.
VPNG Deep Dive: Key Facts and Holdings
| Metric | Detail |
|---|---|
| Full Name | Global X Data Center REITs & Digital Infrastructure UCITS ETF USD Accumulating |
| LSE Ticker | VPNG (GBP) / VPN (USD) |
| ISIN | IE00BMH5Y327 |
| Index Tracked | Solactive Data Center REITs & Digital Infrastructure |
| Domicile | Ireland (UCITS) |
| Structure | Accumulating (dividends reinvested automatically) |
| TER (Expense Ratio) | 0.50% p.a. |
| AUM | ~USD 231 million (as at April 2026) |
| Number of Holdings | 26 companies |
| 1-Year Performance | +47% (as at April 2026) |
| Currency | USD (primary share class) |
| Launch Date | 7 December 2021 |
Source: Global X ETFs, JustETF, April 2026
Top Holdings (as at April 2026):
| Company | What It Does | Weighting |
|---|---|---|
| Equinix (EQIX) | World’s largest data centre REIT — 248+ colocation facilities globally | 14.16% |
| Digital Realty Trust (DLR) | Hyperscale and enterprise data centres across 50 metros worldwide | 12.95% |
| American Tower Corp (AMT) | Wireless tower REIT — 220,000+ communication sites globally | 10.20% |
| Crown Castle (CCI) | US cell tower and small cell network REIT — critical for 5G rollout | ~8% |
| NextDC (NXT.AU) | Australia’s leading carrier-neutral data centre operator | ~5% |
Source: Global X ETFs factsheet, April 2026
Tax Efficiency for Singapore Investors
Because VPNG is Ireland-domiciled, Singapore investors benefit from the Ireland–US tax treaty, which caps US-source dividend withholding tax at 15% — half the 30% rate applied to US-domiciled ETFs. On a SGD 50,000 position in VPNG generating, say, 3% in distributions, the annual WHT saving vs a US-listed equivalent would be approximately SGD 375. Over a 20-year holding period, this compounding advantage is substantial.
Additionally, VPNG is structured as an accumulating ETF — dividends are not paid out but reinvested within the fund. This means Singapore investors receive no cash distributions and therefore avoid even the 15% WHT on declared income. The return accrues entirely through NAV growth, which is not taxed as income or capital gains in Singapore.
| Structure | Example ETF | WHT on US Dividends | US Estate Tax Risk | SG Tax on Gains |
|---|---|---|---|---|
| Ireland UCITS Acc (LSE) | VPNG | 15% (treaty rate) | None | None |
| US-domiciled (NYSE/NASDAQ) | DTCR (US-listed) | 30% | Yes (above USD 60k) | None |
Source: IRS Publication 515, Ireland–US tax treaty, MAS; April 2026
How to Buy Data Centre ETFs in Singapore
VPNG is listed on the London Stock Exchange and can be purchased via international brokerage accounts. It is not available on the SGX and is not CPF-investable. However, it is SRS-compatible if bought through an SRS-eligible broker — check with your broker before investing SRS funds.
Recommended brokers for buying VPNG in Singapore:
1. Interactive Brokers (IBKR)
Best for cost-conscious investors. IBKR offers direct LSE access with commissions as low as USD 1.70 per trade (tiered) or 0.10% min USD 4 (fixed). FX conversion from SGD to GBP/USD is at near-interbank rates (0.002% fee). IBKR is the most cost-efficient platform for portfolios of SGD 20,000 and above.
2. Saxo Markets Singapore
Saxo offers competitive LSE execution with a clean, beginner-friendly interface. Commissions are higher than IBKR (0.10% min GBP 8 for UK stocks), but the platform is more intuitive and offers SGD funding directly. Well-suited for investors who want a local broker with multi-currency support.
3. moomoo Singapore
moomoo has expanded its LSE coverage in 2026. Commissions are competitive and the app is mobile-first — popular among Singapore retail investors. Check current fee schedules on the moomoo Singapore review page before opening an account.
4. Syfe Brokerage
Syfe offers a simplified brokerage product that includes LSE access for Singapore investors. It is the most beginner-friendly option, with a clean onboarding flow and local SGD funding. Use our Syfe referral code for a cash bonus when you open a new account.
Step-by-step process for buying VPNG (using IBKR as example):
- Open and fund your IBKR Singapore account in SGD (minimum USD 0 to open; no minimum deposit)
- Convert SGD to GBP using IBKR’s forex tool (Trader Workstation or IBKR Mobile → Convert Currency)
- In IBKR’s search bar, type VPNG and select the LSE listing (London Stock Exchange, GBP denominated)
- Alternatively, search by ISIN: IE00BMH5Y327
- Place a limit order at or near the current ask price — avoid market orders on thinner-volume ETFs
- Review the order confirmation: check exchange is LSE, currency is GBP
For investors using the FSMOne referral code route: FSMOne offers a Regular Savings Plan (RSP) for selected ETFs, but VPNG is not currently included. FSMOne is better suited for STI ETF or broad MSCI World ETF RSP investing. For VPNG, a direct brokerage account is required.
If you are planning data centre ETF exposure as part of a broader retirement strategy, use our Singapore retirement calculator to model how a thematic allocation fits your long-term goals alongside CPF and S-REIT income.
Risks to Consider
Data centre ETFs offer strong growth potential, but they carry specific risks that Singapore investors must understand before allocating:
1. Concentration risk. VPNG holds only 26 companies, with the top 3 (Equinix, Digital Realty, American Tower) accounting for approximately 37% of the portfolio. A poor earnings print from any one of these names can materially move the ETF.
2. Interest rate sensitivity. Data centre REITs are high-capex businesses that carry significant debt. Rising interest rates increase refinancing costs and can compress REIT valuations. As at April 2026, markets expect the US Fed to hold rates at 4.25%–4.50%, but any upside surprise could weigh on VPNG’s interest-rate-sensitive holdings.
3. AI cyclicality. The current boom in data centre demand is driven in large part by AI infrastructure buildout. If AI investment cycles slow — due to model efficiency breakthroughs (as seen with DeepSeek’s efficiency gains in early 2025), regulatory constraints, or a tech sector downturn — data centre demand growth could decelerate sharply.
4. Currency risk. VPNG trades in USD (VPN) or GBP (VPNG), while most Singapore investors think in SGD. A strengthening SGD against USD/GBP reduces your SGD-denominated returns. There is no hedged share class available for VPNG.
5. Small fund size. At ~USD 231 million AUM, VPNG is a relatively small ETF compared to VWRA (USD 12B+) or CSPX (USD 50B+). Smaller ETFs carry higher bid-ask spreads and a (low but non-zero) risk of closure if AUM falls. Always check current AUM before committing large sums.
For more on how to manage thematic ETF risk within a broader Singapore portfolio, see our guide on passive income Singapore strategies and CPF investment strategy for core portfolio building.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always consult a qualified financial adviser before making investment decisions. Past performance is not indicative of future results.
Frequently Asked Questions
What is the best data centre ETF for Singapore investors in 2026?
The best data centre ETF for Singapore investors in 2026 is the Global X Data Center REITs & Digital Infrastructure UCITS ETF, listed on the London Stock Exchange under the ticker VPNG (GBP share class) or VPN (USD share class). It is Ireland-domiciled, UCITS-compliant, and accumulating — meaning dividends are reinvested automatically, eliminating the withholding tax drag that applies to distributing share classes. The TER is 0.50% p.a. and AUM stands at approximately USD 231 million as at April 2026. It is the only UCITS pure-play data centre ETF available to Singapore investors on the LSE.
Can I buy VPNG using CPF or SRS funds?
VPNG is not eligible for CPF investment — CPF-investable ETFs are limited to specific SGX-listed products (primarily the STI ETF and selected REIT ETFs under the CPF Investment Scheme). However, VPNG may be compatible with SRS (Supplementary Retirement Scheme) if purchased through an SRS-linked brokerage account such as DBS Vickers, UOB Kay Hian, or Philip Securities. Confirm SRS eligibility with your specific broker before transacting, as not all platforms support SRS for LSE-listed ETFs.
Is VPNG better than buying Keppel DC REIT for data centre exposure?
They serve different purposes. Keppel DC REIT (SGX: AJBU) offers Singapore-specific data centre exposure, pays quarterly dividends in SGD, and is CPF-investable — making it better for income-seeking Singapore investors with local portfolio focus. VPNG provides global exposure across 26 data centre REITs and tower operators predominantly in the US, with no SGD income stream but superior diversification. Many Singapore investors hold both: Keppel DC REIT for local yield and VPNG for global thematic growth.
What is the withholding tax on VPNG for Singapore investors?
Because VPNG is structured as an accumulating ETF domiciled in Ireland, Singapore investors do not receive direct dividend distributions. Dividends from the underlying US holdings are received at the fund level at a 15% withholding tax rate (under the Ireland–US tax treaty), then reinvested into the fund’s NAV. Singapore investors pay no personal income tax on these reinvested distributions. This compares favourably to US-domiciled equivalents like DTCR (listed on NASDAQ), where Singapore investors would face a 30% withholding tax on distributions. There is no Singapore capital gains tax on VPNG profits when you sell.
What are the main risks of investing in data centre ETFs?
The key risks for Singapore investors in data centre ETFs like VPNG include: (1) Concentration risk — the top 3 holdings make up ~37% of VPNG’s portfolio; (2) Interest rate risk — data centre REITs carry significant debt and are sensitive to rate rises; (3) AI investment cycle risk — if AI capex slows, data centre demand growth may decelerate; (4) Currency risk — VPNG is USD/GBP denominated with no SGD hedge; and (5) Small fund size risk — at USD 231 million AUM, VPNG is smaller than mainstream index ETFs and carries some closure risk if flows reverse. These risks make VPNG appropriate as a satellite (5–15%) allocation in a diversified portfolio, not as a core holding.
Which broker is cheapest for buying VPNG in Singapore?
Interactive Brokers (IBKR) is the most cost-efficient broker for buying VPNG in Singapore. Under the tiered pricing plan, commissions start at USD 1.70 per trade, with FX conversion at near-interbank rates. For a SGD 10,000 purchase of VPNG, the all-in cost at IBKR (commission + FX spread) is approximately SGD 15–25, compared to SGD 50–80 at Saxo and SGD 30–50 at moomoo. For smaller amounts or beginner investors prioritising simplicity over cost, Syfe Brokerage offers a clean onboarding experience and is a reasonable choice for getting started.
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