The data center sector remains among the most favored real estate asset classes due to insatiable tenant demand, limited supply and rising rents. There was strong investor appetite throughout 2024 across various deal profiles. Cash flow buyers were looking to add data centers to their portfolios and operators were looking for value-add opportunities with immediate power and capacity in place.
Investors continue to focus on core markets. While land values are higher and power lead times are longer, core markets continue to be perceived as the safest investments that can accommodate cloud, AI, and enterprise workloads.
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