A classic problem in CRE is to see some area come under demand, rush in to invest, and eventually see it overpopulated. The mechanism is easy to understand because it can take extended time to build projects, only to see that many others did, potentially creating an amount of supply that can't be quickly digested.
The point is worth considering in the face of a recent Yardi Matrix report on how AI is driving demand for data center.
"Artificial intelligence has grown rapidly over the past year, requiring vast amounts of data and processing power, in turn generating increased demand for data centers," the report says. But it also looks at factors that can make facility construction difficult and how that might affect where projects will be built.
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