Publications

- November 1, 2022: Vol. 14, Number 10

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Top trends in data centres: How investors can capitalise on growing sector demand

by Mard Naman

Investor interest in data centres grew rapidly during the pandemic, as social media use, work-from-home and cloud computing amped up usage and demand. The pandemic has waned, but data centre demand has not — and the upwards trajectory of the data storage needed in the new economy continues to boost investor interest.

Demand just keeps growing

“The number one top trend across the industry is the continuing high demand coming from all categories but primarily concentrated on hyperscale customers,” says Michael Hochanadel, managing director and head of digital assets for Harrison Street. “The expansion coming from that cohort has been extraordinary and appears to be accelerating, not stabilising or declining.” Hyperscale data centres generally serve a limited number of large clients, such as Google or Amazon.

All types of data centres (hyperscale, colocation, edge and carrier hotels) have the wind at their backs. “For well-built, well-p

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