What role is the emergence of AI playing in driving demand for data centres?

Cloud computing and now the meteoric rise of artificial intelligence are driving data centre returns to new heights, outpacing supply and leading the sector to become one of the most in-demand asset classes, say Matt Hackman, portfolio manager, and Sebastian Dooley, senior fund manager with Principal Asset Management. Just a decade ago, data centres were widely considered little more than an emerging infrastructure play, but have now transformed into a core sector of the commercial real estate market.

Matt Hackman: In the US, we have seen a multitude of headlines announcing bigger and bigger AI training model deployments. Hyperscale companies continue increasing their capex targets, showing commitment to AI growth. High-intensity AI training workloads require dense server deployments with liquid-cooled and hybrid designs, enabling effective heat exchange and operational efficiency.

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