Robust demand for data centers
- June 1, 2022: Vol. 34, Number 6

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Robust demand for data centers

by Loretta Clodfelter

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,” says Lowry. “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.”

But there remain challenges for investors in the segment.

“This is a highly specialized sector for the real estate investor,” says Lowry. “We continue to have success in advising both experienced and first-time investors because of our expertise in this area.” He notes a number of factors investors should understand, which set data centers apart from other real estate investments. “For example,”

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