How does the real estate industry — and investors in that industry — best meet the outsized demand for data centers, especially given their requirement for an outsized need for power and the high cost to build them? In an interview published in the November issues of Institutional Real Estate Americas, Institutional Real Estate Europe and Institutional Real Estate Asia Pacific, Carrington Brown, senior managing director, development and portfolio management, with Affinius Capital, sets out to address this question.
“Power is a challenge,” says Brown. “Depending on whose report you read, the U.S. data center market is approaching 20 gigawatts, and it could double during the next five to six years. The only thing that’s keeping it from growing even further is power. Some markets have power-generation issues. Other markets have power delivery or transmission capacity issues. Infrastructure will continue to need to be developed not only for
