Operating through the pandemic: On the resilience of data centers
COVID-19 caught the world off guard. As our scientists, healthcare workers, and governments work to understand and contain the outbreak, investors and investment managers are seeking to understand the impact COVID-19 is having on their portfolios. This includes investors and managers trying to understand what, if any, assets have withstood the ravages of this epidemic and whether there are any investments that can still achieve pre-COVID-19 projections.
Resilient product types that immediately come to mind are those providing essential services, such as grocery stores and pharmacies, as well as certain healthcare facilities and medical research labs. One property type that has positively stood out during the pandemic is the infrastructure that powers the internet — data centers. COVID-19’s impact still needs to be fully understood, but the initial massive increase of internet traffic and the sector’s resilience under pressure suggest that data centers are poised to pros