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Research - FEBRUARY 26, 2020

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Why invest in data centers?

by Denise DeChaine

Data centers are a hot topic amongst institutional investors these days but there are still a lot of questions about data centers, such as how do tenants choose the location of their data center operations? And why invest in an operating company rather than a stand-along property?

In a recent video produced by IREI, Jeff Kanne, president and CEO at National Real Estate Advisors, explained.

“There are several very critical characteristics that different users are going to look for,” says Kanne. “User profiles are not homogenous. Different users and data centers have different reasons for being in the data center, so different things are at different levels of importance.”

Kanne goes on to explain that one characteristics that is important to everyone is cost. How much is rent going to be? How much is the power going to cost? The tenant is going to pay for the power to compute as well as the power to generate or power the HVAC systems to cool the facilitie

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