Asia-Pacific

AI’s appetite for electricity is forcing investors and developers to rethink how data centers grow, with renewable energy moving from the sidelines to the heart of operations, writes Elisabeth Jeffries.

PEI Group data shows that investors and managers continue to prioritize technology-focused real estate despite a tougher fundraising environment.

Investors are applying newfound pressure on expenses and fee structures after years of real estate underperformance.

The $75m commitment builds on the first close for the fund in June, which raised $300m from Dutch investors APG Asset Management and Bouwinvest.

The Houston-based real assets manager will elevate three executives into new roles at the highest tier of the organization.

PERE’s flagship Global Investor 100 ranking has swelled to a record high in aggregate allocations, but its growth was unsupported by any meaningful increase in activity.

Demand remains exceptionally strong, but the industry’s rapid expansion is creating new constraints around power, land, labor and community acceptance.

As markets and student flows fragment, investors are zeroing in on schools and geographies with durable demand.

PEI Group data shows a sector gaining increased attention amid rising demand.

The rapid rise of AI is changing not only where data centers are built, but also how investors need to assess risk and value across the sector, says PGIM’s Morgan Laughlin.