Developers are building but they can’t keep up with demand—driving vacancy rates to all-time historic lows and rents to rise. The amount of capital required to develop the capacity to fill forecasted demand is unprecedented in the industry.

Those dynamics create a landlord-friendly market attractive to institutional investors looking for opportunities to diversify their portfolios with a viable alternative asset class. For most investors, the most viable way to enter the data centre market today is via a fund investment.

OPPORTUNITY DRIVERS: Already exponential, demand growth is accelerating

Growth in demand for data centre capacity is fuelled by surging digital data creation, cloud computing, and the widespread adoption of new technologies like artificial intelligence (AI). As AI proliferates across industries, the need for infrastructure to support these workloads is skyrocketing. Traditional and cloud workloads continue to grow rapidly as well. Spending on cloud infrastructure is projected to reach $156.7 billion by 2027, according to IDC1—over a third of total compute and storage infrastructure spend. In fact, hyperscale companies’ massive and growing cloud platforms are subsidizing their AI investments, as cloud businesses are typically very profitable.

Read the full ‘Thought Leadership’ article at the link below