Data centers are in the midst of a build boom supercharged by demand for technologies such as artificial intelligence (“AI”) and 5G cellular, which are driving the delivery of next generation products and services.
AI services are being layered on top of the already robust need for cloud-based servers that provide critical infrastructure for global connectivity, processing, and storage.
Corporate and private investors are increasingly capitalizing on this demand by investing in data centers. In 2024, total mergers and acquisitions for data centers hit a record $57 billion. Despite increasing investment in data centers in recent years, this asset class continues to offer robust investable opportunities.
CIM has high conviction in data centers and believes we are in the early stages of a data center market expansion. AI is expected to boost global GDP by 7% (or almost $7 trillion) and lift labor productivity growth by 1.5% over a 10-year period.
To read other CIM Group alternative investment white papers visit CIMGroup.com.
