Technology

Data center owners are looking to generate power onsite and at linked facilities in order to meet growth and sustainability targets.

Explosive growth in AI and cloud services is causing major shifts in the data center industry, not least location and site selection preferences.

AI-driven demands for data centers and constraints on the supply of land and power have created a sweet spot for investing in developments and stabilized assets, says PGIM Real Estate’s Morgan Laughlin.

Hyperscalers’ growth is outpacing in-house delivery capabilities, with third-party providers set to capitalize on bespoke data center demand.

The data center market is being transformed by AI, which requires new designs and opens up new locations – all while sustainability remains front of owners’ minds.

The growth of AI is changing how and where data centers will be built and driving substantial demand in Asia and other regions, says Actis’s Thomas Liu.

New technological capabilities are poised to drive exponential growth in data storage demand. But PERE finds that for data center owners and investors, capitalizing on this paradigm comes with serious challenges.

PERE examines five key trends, each presenting unique opportunities and challenges.

Managers work to attract and retain tenants as residents’ expectations go beyond having a home with a few creature comforts.

Capital raised for value-add funds has been falling since 2021, but many analysts believe commercial real estate will experience some recovery in 2024’s second half.