Data centers have become one of the most capital-intensive areas of real estate, attracting significant institutional investment. Yet not all investors are approaching the sector the same way. While demand for computing infrastructure remains strong and development activity continues to expand, the asset class presents structural challenges for core, open-end real estate strategies focused on stable income and long-term value preservation.
In recent years, institutional capital has flowed aggressively into the sector, driven by rapid growth in artificial intelligence, cloud computing and digital infrastructure. At the same time, investors focused on core strategies, particularly those managing evergreen, open-end funds, have taken a more measured view, emphasizing sectors with durable demographic or secular tailwinds and predictable long-term cash flow.
Core strategies typically prioritize assets capable of delivering stable income and steady appreciation over long hol
