CBRE: Data centers were hot in 2022 — will it continue?

2022 was another record year for the data center sector, as hyperscalers and enterprise users added capacity to keep up with the global economy's digital transformation, prompting more investment and development in the sector, according to CBRE.

Investors remain focused on top-tier data centers with strong credit tenancy, significant remaining lease terms and the ability to meet customer demand for the right connectivity, cloud on-ramps and density. There was limited transactional data in second half 2022. This is likely due to elevated inflation, higher interest rates and rate uncertainty in the near- and long-term.

CBRE expects the pace of digital transformation to keep increasing as companies adapt to a hybrid workforce. Private cloud and private 5G networks are now a top priority for Fortune 500 companies.

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