Data centres were hot investments in the past few years as investors bet on the increasing cloud and data demand in the tech era. Very few investors believed that the bet will go wrong simply basing on the premise that ‘this is the future’. Well. Things went south after the Covid boom for data centre REITs. Keppel DC REIT (AJBU) share price peaked around the second half of 2020 at a price of $3.04 and it gradually fell to $1.97 in Jul 2022. That’s a 35% decline and the dividend yields weren’t sufficient to cover this drop as they were less than 10% in the past 2 years. The other pure play data centre REIT listed in Singapore is Digital Core REIT (DCRU). It IPO-ed in end 2021 to much fanfare – share price jumped 15% higher than the IPO price of US$0.88 on the first day of trading. It peaked at US$1.18 before crashing to US$0.76, a 36% decline in just 7 months of trading. Here’re reasons for their fall....