Скачать или смотреть Are There Structural Issues With Investing In Data Center REITs?

Data center REITs sit at the intersection of real estate, infrastructure, and technology, but that positioning comes with structural challenges that are often overlooked in bullish narratives. While demand for compute, cloud, and AI workloads continues to grow, the real estate wrapper around these assets introduces constraints that do not exist for pure infrastructure operators.

First, capital intensity is extreme. Data centers require constant reinvestment in power density, cooling, redundancy, and security. Unlike traditional industrial or office assets, functional obsolescence arrives quickly. Facilities designed for yesterday’s rack loads can become economically irrelevant in a short time frame, forcing REITs into perpetual capital cycles that compress free cash flow.

Second, power availability has become the binding constraint. Zoning, interconnection queues, grid reliability, and utility timelines increasingly dictate value more than location or rent. Many REIT portfolios are exposed to markets where power expansion is uncertain, slow, or politically constrained, creating long-term growth risk that does not show up in near-term earnings.

Third, tenant concentration and hyperscaler leverage remain structural issues. Large cloud providers command pricing power, demand customized buildouts, and push risk back onto landlords through long lease terms with limited upside. While leases appear stable, they can cap returns while locking owners into high fixed costs.

Finally, regulatory and geopolitical scrutiny is increasing. Data sovereignty, energy usage, and environmental impact are becoming policy issues, not just operating considerations. For investors, the question is not whether data demand grows, but whether the REIT structure is flexible enough to absorb these risks without eroding long-term value.