As data center development accelerates to meet growing demand for AI and digital infrastructure, its impact is extending beyond the industrial and technology sectors. For multifamily investors, the expansion is introducing new considerations around housing supply, utility costs and property-level fundamentals.
In an interview with IREI, Yisroel Berg, CIO of multifamily at Harbor Group International, discusses how data center development is becoming part of multifamily investment underwriting, the opportunities and risks emerging in markets with significant data center activity and whether the AI buildout is beginning to influence capital-allocation decisions.
How is proximity to data centers becoming a new factor in evaluating multifamily investments?
A year or two ago, a nearby data center was not something we looked at in due diligence. Today, it is a standard line item. We look at it the same way we would look at any large piece of infrastruc
