Big data is big business. Storing it is too.
Warehouse owners were already tapping into the demand for space created by cloud computing. Artificial intelligence has turbocharged that trend. Landlords are building bigger, more powerful data centres and a European leasing frenzy, reminiscent of that for last-mile logistics during the pandemic, is under way.
Extra demand for space creates a constraint in terms of the supply of power. New grid connections take years so a glut of space in the short term seems unlikely. This creates the strongest fundamental backdrop in any property sector in 25 years, according to Green Street’s Peter Papadakos.
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