Posted on 08/03/2024 3:42:27 AM PDT by RoosterRedux
One of the largest industrial real-estate developers in the U.S. plans to begin developing data centers as an artificial-intelligence boom drives demand for specialized buildings.
Panattoni Development said Thursday it hired a partner, Adam Kramer, to lead a team that will build and operate data centers across North America. The Irvine, Calif.-based company said it plans to develop a gigawatt of data-center capacity over the next 5 years...
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Capacity in North America’s largest data-center markets such as Dallas, Chicago and northern Virginia increased 26% last year from 2022, according to commercial real-estate services firm CBRE. The sector has some 98 gigawatts of new capacity in the planning stages and expected to come online over the next decade, datacenterHawk said.
Still, there are challenges to building the facilities. Data centers are expensive to develop compared with warehouses and require access to huge amounts of power to run and cool the servers, routers and other hardware inside, said Pat Lynch, head of CBRE’s global data center solutions group.
“It’s a significant investment; it’s a very specialized investment,” Lynch said. “There’s a lot of risk that goes into that build-out.”
Other commercial real-estate sectors have suffered declining valuations due to high interest rates and sagging demand. Remote work has slashed the need for office space, and online shopping has dented demand for retail space in malls.
Industrial real estate has remained strong, with rents climbing even as leasing has slowed over the past two years as companies grow into space they leased during a pandemic-era race to extend logistics networks.
Panattoni’s Roberts said the increase in demand for data centers reminds him of the shift in industrial real estate over the past two decades away from traditional distribution centers that restocked stores toward e-commerce fulfillment centers that ship individual packages to customers.
(Excerpt) Read more at wsj.com ...
It wasn't a meaty article but it did point to a nascent trend.
mebe the AI can figure out how to generate the electricity to keep themselves turned on......
There will be 5 or 6 nuclear power plants in Ukraine that no one will need.
They'll have to.
No "off" switch...
Rolling brown and black outs EV’s out lawed................
hired a partner, Adam Kramer
>>>>>
From Kramerica?
bump
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