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OCTOBER 31, 2022

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Capitalizing on data center demand

by Mard Naman

Investor interest in data centers grew rapidly during the pandemic, as social media use, work-from-home and cloud computing amped up usage and demand. The pandemic has waned, but data center demand has not — and the upwards trajectory of the data storage needed in the new economy continues to boost investor interest.

Demand just keeps growing

“The number one top trend across the industry is the continuing high demand coming from all categories but primarily concentrated on hyperscale customers,” says Michael Hochanadel, managing director and head of digital assets for Harrison Street. “The expansion coming from that cohort has been extraordinary and appears to be accelerating, not stabilizing or declining.” Hyperscale data centers generally serve a limited number of large clients, such as Google or Amazon.

All types of data centers (hyperscale, colocation, edge and carrier hotels) have the wind at their backs. “For well-built, well-p

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