It's among the hottest sectors in commercial real estate: Data centers, where capacity is set to triple by 2030—and yet it's still not enough to meet demand, according to Casey Miller and Ben Wobschall, the authors of the sector's asset class outlook in the latest issue of Summit Journal. So will data centers be able to support tomorrow's workloads? Are data centers a viable asset class for institutional investors? And what's the most viable way to enter the market? Miller and Wobschall, both Managing Directors of Portfolio Management at Principal Asset Management, answer all these questions and more. Read the article: https://lnkd.in/gvNnaza5 Thanks to the sponsors of Summit Journal 15: Principal Asset Management and Cerberus Capital Management. #datacenters #AI #realestate #commercialrealestate
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Make sure to read the latest thinking on Data Centers from AFIRE Summit Journal's mid-year almanac.
It's among the hottest sectors in commercial real estate: Data centers, where capacity is set to triple by 2030—and yet it's still not enough to meet demand, according to Casey Miller and Ben Wobschall, the authors of the sector's asset class outlook in the latest issue of Summit Journal. So will data centers be able to support tomorrow's workloads? Are data centers a viable asset class for institutional investors? And what's the most viable way to enter the market? Miller and Wobschall, both Managing Directors of Portfolio Management at Principal Asset Management, answer all these questions and more. Read the article: https://lnkd.in/gvNnaza5 Thanks to the sponsors of Summit Journal 15: Principal Asset Management and Cerberus Capital Management. #datacenters #AI #realestate #commercialrealestate
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Will data centers continue to cluster in central locations or are secondary markets already providing the land and power alternatives for AI development. Critical questions will be addressed by the Real Estate panel at Platform Global this year. Chaired by Stephen Beard of Knight Frank an outstanding expert panel will tackle issues vital to investors in the sector. Register today https://lnkd.in/erM4GVsC #RealEstate #Investment #Finance #Growth #Datacenter #Expansion #AI
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Will data centers continue to cluster in central locations or are secondary markets already providing the land and power alternatives for AI development. Critical questions will be addressed by the Real Estate panel at Platform Global this year. Chaired by Stephen Beard of Knight Frank an outstanding expert panel will tackle issues vital to investors in the sector. Register today https://lnkd.in/erM4GVsC #RealEstate #Investment #Finance #Growth #Datacenter #Expansion #AI
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IBM Consulting | Digital Transformation | Advisory | Global Program Delivery | Enterprise Architecture I Consulting Partner
Harnessing real-time data to elevate trading strategies is poised to revolutionize the landscape of wealth and asset management. This transformation, fueled by cutting-edge technologies at our fingertips, promises a future like no other. For example embracing API technologies to seamlessly connect with third-party and FinTech platforms, and infusing decision-making frameworks with dynamic market data, will not only amplify customer experiences but also empower enterprises to unlock the full potential of Generative AI. #generativeai #data #wealthmanagement #digitaltransformation
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CEO & Managing Director NEXTDC, Chairman La Trobe University Business School
The excitement surrounding artificial intelligence is fueling a significant expansion in the commercial real estate sector, particularly in data centers. Developers are racing to construct data centers equipped with the robust power and cooling systems necessary for AI servers. Notably, Blackstone has grown its data center development pipeline from $1 billion to over $15 billion in just two years. Investment firms like PGIM Real Estate and IPI Partners are also raising substantial funds dedicated to data centers. Marc Ganzi chief executive of DigitalBridge has been investing in data centers for 29 years. “And I’ve never seen a market demand backdrop like we’re seeing today,” he said. DigitalBridge is planning to add data centers with one to two gigawatts of capacity each year for the next five years. Ganzi estimated that AI makes up about 20% of DigitalBridge’s demand today with the rest mostly coming from cloud-computing businesses. “We just don’t see this slowing down,” he said. Tech giants such as Google, Microsoft and Amazon Web Services (AWS) are leasing substantial capacity in North American data centers, surpassing previous records. The data center industry is planning 15 gigawatts of new capacity in North America, enough to power around four million homes. AI computing's complexity, like OpenAI ChatGPT, requires more power and cooling, setting data centers apart from struggling commercial real estate sectors. While data centers are thriving, they face challenges such as securing future electricity sources for power-hungry AI systems and environmental concerns. Despite obstacles, the demand for data centers remains strong, driven by AI and cloud computing, and efforts are underway to address power needs through technology and renewable sources. #ai #digitalinfrastructure
A Niche Real-Estate Corner Goes Mainstream in the Digital Age
wsj.com
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🏡 Real Estate Data Market Map 🗺️ Discover how AI-driven data structuring can elevate your market intelligence. The shift is clear—traditional data sources alone aren't enough. Today’s real estate landscape demands advanced analytics and diverse data inputs. Check out the latest Real Estate Data Landscape mapped by Matt Knight and Cherre. ⬇️ In a complex market, sophisticated data ecosystems provide new insights. With the right data, you can: - Merge macroeconomic trends with detailed web data for accurate market forecasts. - Enhance property valuations with nontraditional data for thorough assessments. - Use predictive analytics to identify investment opportunities and risks. - Monitor real-time web data to optimize portfolio performance. Nimble bridges data science and web data, empowering real estate firms to leverage nontraditional data at scale Explore More: https://lnkd.in/dZ9a_XMq #RealEstate #DataScience #AI #MarketIntelligence #Innovation
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Executive Director (ESI), Dean's Chair (Mechanical Engineering), Founder (CoolestDC), PhD, FASME, FEI, FIES
JLL Says AI Demand Turns Data Centers Into ‘Hottest Asset Class’ Summary: According to Christian Ulbrich, CEO of Jones Lang LaSalle Inc. (JLL), data centers have emerged as the "hottest asset class" in the commercial property market, primarily driven by surging demand from corporate America's increasing reliance on artificial intelligence (AI). In a recent Bloomberg Television interview, Ulbrich highlighted the significant growth in demand for data centers, suggesting that this trend will continue to dominate real estate investments for the next five to ten years. This rise in data center demand coincides with an overall challenging environment for the commercial real estate sector, which faces increasing office vacancies. However, high-end offices continue to perform well, with rental rates for top-tier buildings still rising globally, despite the growing vacancy rates. In contrast, older, more commoditized office buildings are facing struggles. The surge in electricity demand for AI-driven data centers is notable, with utilities like Dominion Energy Inc. and Exelon Inc. reporting requests for massive increases in power supply, equivalent to several nuclear reactors, particularly in areas like northern Virginia and Chicago. This increasing demand poses challenges for the energy grid's capacity to keep up, emphasizing the need for more substantial grid access and infrastructure. The profitability and resilience of JLL's business, especially in U.S. office leasing, which saw a 14% increase, underscore the real estate market's dynamic nature. Ulbrich credits enhanced efficiency for helping to sustain margins during globally patchy leasing markets. The performance of logistics centers and multifamily properties also remains strong, further diversifying the real estate portfolio's strength against the backdrop of evolving market demands. #RealEstateTrends #DataCenters #AI #CommercialProperty #JLL #OfficeLeasing #UtilityDemand #Infrastructure #InvestmentOpportunities
JLL Says AI Demand Turns Data Centers Into ‘Hottest Asset Class’
bloomberg.com
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While #DataCenters have faced challenges in the past, the current demand, driven by #AI and #CloudComputing needs, is unparalleled. Industry insiders and analysts believe that the sector's growth trend will continue, especially for centers equipped to handle AI's rigorous demands. The industry's response to environmental concerns and energy limitations will play a critical role in shaping its future trajectory. - CRE Daily
A Niche Real-Estate Corner Goes Mainstream in the Digital Age
wsj.com
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Talk about a company on a mission🚀 Vantage Data Centers has secured new financing to bolster Its expansion Into the European and African markets🌍 Partnering with Ares, CDQP, and Schroders Sealing a huge €750 million to fund the Data Centre roll-out💰 Article in the comments⬇ #ai #datacentre #missioncritical
Thank you for the tag, we are proud sponsors! This article looks at how the massive demand for data center capacity is outpacing supply. This presents unique opportunities for investment in a large and growing alternative asset class that exhibits core characteristics.