Demand for data centers to remain robust

Demand in the data center sector is likely to remain elevated in the near term, according to Eddie Lowry, partner, data center sector team, with Bryan Cave Leighton Paisner.

“The data center market continues to produce new opportunities for investors for the foreseeable future,” said Lowry in an interview with IREI. “Based on continuing heightened demand, both new construction and existing data center properties will be good investments for passive investors and private equity as well as for owner/users. We do not see any reduction in the demand going forward in 2022 or 2023.”

Demand for data center properties has only increased with the COVID-19 pandemic. Lowry pointed to the increase in ecommerce since the start of the pandemic, which has driven demand for additional server space to support online shopping activity.

But there remain challenges for investors in the segment.

“This is a highly specialized sector for the real estate investor,” s