Data center trends: Data storage needed in new economy continues to increase investor interest

The upward trajectory of data storage needed in the new economy continues to increase investor interest in data centers. What are the latest trends, and how are obsolescence and environmental concerns being handled by the industry?

A recent virtual roundtable with institutional investors, consultants and investment managers held by Institutional Real Estate, Inc. examined this question. The in-depth discussion was moderated by Reno Sio, managing director, Asia Pacific, at IREI.

Key takeaways include the following:

Likely deal breakers for institutional investors are data center investments that don’t meet rigorous ESG, location and regulatory requirements. Data center investment and development is at an earlier stage in Asia than in the United States. Investors in Asia can look to the U.S. market — and compare the current data center sector in Asia to 10 to 15 years ago for the logistics sector in Asia — as a reference for the kind of market