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As reliance on digital technology increases, investor demand for data centers rises
As our dependence on digital technology at work and at home continues to rise, there is a sector of the commercial real estate industry that is benefitting – data centers. According to Technavio’s latest market report, the data center market is estimated to grow by $615.96 billion from 2021 to 2026, which equates to a compounded annual growth rate of 21.98 percent.
This growth, 35 percent of which is located in North America, has caught the eyes of investors and lenders that have historically not been drawn to the space, which has resulted in a flurry of new entrants over the past year, including life companies and banks. JLL Capital Markets is currently in the market with multiple joint venture data center opportunities and remains very active in the data center debt placement assignments for new construction, transitional and stabilized assets.
“There are limited opportunities to play in the data center sector as the sheer number of transactions is relatively s