Data centers are a great example of how real estate moves with the economy, Marcus & Millichap CEO Hessam Nadji said during a recent appearance on CNBC.
“This is a real estate accommodation of a wave of technology that is now morphing from the cloud and server farms of a few years ago to AI,” said Nadji. “Only 20% of the current capacity is AI oriented, and just think about how much AI is going to grow.”
The data center market has doubled in the past four years and is attracting long-term leases from companies that need them. These highly specialized facilities are attractive to developers where they can access sufficient power and get local municipality approvals to support construction.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
