Data centers have moved rapidly from a niche real estate strategy to a significant institutional investment sector. However, the opportunity is becoming less about gaining exposure to the sector and more about identifying platforms that can deliver the next wave of capacity. In an exclusive interview with IREI, TJ Hofheimer, managing director, portfolio and asset management at National Real Estate Advisors, and co-portfolio manager of the National Data Center Fund, explained how that distinction is shaping the investment landscape as competition for stabilized assets, powered land and development opportunities intensifies.
“In our view, today’s risks are less about demand and more about execution — access to power, development timelines, supply chain constraints, regulatory considerations and capital deployment discipline,” Hofheimer said. “For long-term investors, those same barriers can create an accretive moat around existing assets while creating compelling oppo
