The AI revolution is transforming real estate markets as data center demand creates unprecedented infrastructure needs.
DataBank recently secured nearly $2 billion in equity from investors, including $1.5 billion from Australia’s largest pension fund, to construct campus developments across major U.S. markets including Dallas, Northern Virginia, and Atlanta.
U.S. data center vacancy rates are plummeting toward zero percent in core markets, with rental rates doubling in under a year. Construction has increased sevenfold in two years, yet the power grid struggles to keep pace with facilities requiring massive energy consumption. Data centers are projected to consume up to 9% of total U.S. electricity demand by 2030, up from 4% in 2023.
“There are certain markets where utilities are three years out to getting more power or longer.”
— Kevin Ooley, President and CFO at DataBank
Technology giants are partnering to revive nuclear power plants, including Microsoft’s Three Mile Island agreement and Google’s small reactor deals. DataBank maintains focus on major metropolitan areas, providing backup options when markets reach power capacity.
For more information on AI’s impact on data center real estate development, you can access the full article on CoStar.
