The commercial real estate industry is experiencing an unprecedented surge in Data Center transactions, driven by exponential growth in cloud computing, AI adoption, and digital transformation across industries. As demand for robust digital infrastructure accelerates, investors, lenders, and asset managers face unique challenges and opportunities in underwriting, servicing, securitizing and managing these highly specialized assets.
Join us for a panel discussion featuring industry leaders from investment, lending, asset management, and technology sectors to explore:
- Market Drivers: What’s fueling the explosion in Data Center deals, and how sustainable is this growth? Details about the asset itself.
- Power Demands: Discussion on grid limitations and future sources of power (mini-nuclear plants, wind and solar), government intervention, behind the meter, environmental impacts. How long is the typical development phase and subsequent shift to more permanent financing?
- Underwriting & Servicing Nuances: How do Data Center assets differ from traditional CRE in terms of risk, valuation, and loan servicing requirements? How are the risks different for enterprise colocation versus hyperscale? How important is obsolescence given seemingly constant evolutions in cooling, chips and servers?
- Investment Thesis: What are owner/operators looking for in investors or debt providers? What are the risks related to dominant chip providers such as Nvidia, or exposure to hyperscalers and neo-cloud providers?
- Securitization Debate: How are bookrunners evaluating the owner/operator for securitization, how much equity factors into the equation? How do Rating Agencies underwrite these assets and assign risks? Will ABS and CMBS continue to be the dominant executions; what are the advantages and disadvantages of each?
- Future Outlook: How will emerging technologies and ESG trends shape the next wave of Data Center investment? What is the impact on local communities and how are data center owner/operators responding to pushback? How does local and federal government influence change the trajectory going forward?
