Jim Footh, Managing Director, Data Center Investments & Portfolio Management at PGIM real estate, discusses the fast-growing investment potential of data centers, and how AI is further fueling this trend.
Data centers are one of the fastest-growing areas within real estate investing. Growth is driven by the increasing digitization of our lives and the evolution of AI. Demand for data center builds has various considerations including location, sustainable power, and tenant segments. Keshav and Jim explore the opportunities inherent in this exponential increase in the need for power.
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Key Takeaways:
- Data Center Sector Supply-Demand Imbalance [2:27]
- Data Center Location Depends on Applications and Workload [3:31]
- Data Center Tenant Segments [9:21]
- Integrating Sustainable Power [13:29]
- Opportunities in Tier 1 and Tier 2 Data Center Markets [15:37]
- Data Center Investment Considerations [20:23]
*The views expressed herein are those of the speaker at the time the comments were made and may not be reflective of their current opinions and are subject to change without notice, and should not be considered investment advice.
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Shareables:
- “AI is going to push construction of data centers into more remote areas but there’s still demand for data centers in those close in-city locations.” — Jim Footh, Managing Director of Global Data Center Investments at PGIM Real Estate #alternativeinvesting #realestateinvesting
- “They are complex investments for sophisticated investors that want to come on this journey as demand for data centers continues to evolve.” — Jim Footh, Managing Director of Global Data Center Investments at PGIM Real Estate #PGIMPodcasts #alternativeinvesting
- “The industry is focused on creating and evolving designs to make data centers more efficient so there is less wasted power.” — Keshav Rajagopalan, Managing Director, Head of Product & Strategy, PGIM Multi-Asset Solutions #PGIMalts #investing
- “In the face of the unprecedented demand for data centers, supply will continue to be a challenge.” — Keshav Rajagopalan, Managing Director, Head of Product & Strategy, PGIM Multi-Asset Solutions #PGIMalts #institutionalinvesting
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