Can AI Reshape NYC Real Estate? DataBank’s Expansion Signals Yes

DataBank is completing a 45-megawatt data center in upstate Orangeburg that will connect to its Manhattan locations at 60 Hudson and 111 Eighth Avenue, plus its Newark facility at 165 Halsey Street. This expansion comes as massive AI infrastructure investments are transforming New York’s commercial real estate market.

The AI boom is driving unprecedented demand for office space and data center infrastructure across the region. Major investments include SoftBank’s announced $100 billion AI initiative, plus Dubai developer Damac’s $20 billion commitment for Midwest and Sunbelt data centers. New York State is also receiving $112 billion in chip maker investments through the Albany NanoTech Complex.

AI firms have expanded from 450,000 square feet to over 4.8 million square feet in the past decade. Major deals include OpenAI’s 90,000-square-foot lease at the Puck Building and Harvey’s expansion to 17,000 square feet at 315 Park Avenue South, reflecting the sector’s rapid Manhattan growth.

For more information on AI’s impact on New York real estate development, you can access the full article on the New York Post.