How are CRE investors getting in on the data centre boom?
Data centres are evolving rapidly, driven by AI demand. Discover the challenges and opportunities shaping this dynamic investment landscape.
Data centres are rapidly transforming from a niche sector to a dominant theme in global investment, particularly following the launch of ChatGPT in late 2022. With data centre construction valued at an estimated .2 trillion and 847 projects underway worldwide, the demand for these facilities is surging.
The United States leads the charge with 228 projects, while China follows with 98. However, Europe faces challenges such as stricter regulations and limited power supply, hindering its development. Investors are increasingly partnering with hyperscalers like Meta and OpenAI to construct AI training facilities, reflecting a shift in focus towards high-performance computing.
Despite the growth, hurdles remain for developers, including access to power and community opposition. Investors must navigate concerns related to tenant concentration and potential obsolescence, as the market adapts to the evolving demands of AI technology.
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