Data centers reshape real estate as banks struggle with funding
Stargate AI data center, which is under the stage of construction in Texas, Texas, on Tuesday, September 23, 2025. Stargate is a cooperation to create data centers and other infrastructure for artificial intelligence throughout the United States with the promotion of President Donald Trump of Openai, Oracle and Softbank.
Kyle Grillot | Bloomberg | Getty Images
For decades, the global real estate was revolving around those who could be seen – shimmering office towers, shopping centers and cup hotels, but this increasingly passed to the “invisible” property: cloud and data centers.
Kishore Moorjani, CEO of Capitaland Investment and Special Fund Team CEO CEO, changes ‘invisible’ because I call the “real estate world ‘visible’.” He said.
“[It’s] Everything we can’t see, but we use it: cloud, as we like to call, lives in the data center, “Milken Institute in Singapore said in a panel at the Asian Summit.
According to a recent 2025 data center investor interest rate questionnaire Real Estate Services Company CBRE plans to increase their investments in data centers. 41% out of the 92 major investors participating in the survey said that they plan to allocate 500 million dollars or more equity to the data center sector in 2025 compared to 30% last year.
The data center demand has increased to a large extent in recent years due to explosion in AI workloads, which require extensive information processing power, electrical power, cooling and network infrastructure. Goldman Sachs predictions Global power demand from data centers will rise to 50% by 2027 and 165% by 2030%.
Stuart Crow, APAC Capital Markets CEO at Global Real Estate Firm JLL, said investors’ portfolios away from traditional sectors and alternatives.
“Most of this is data centers and now related battery storage and infrastructure.” He said.
Gawin Gawin Gawin Gawin Gawin Gawin Gawin Gaw, another panelist Gaw Capital Partners, added that China has invested in data centers.
Capital restrictions?
However, panelists, a financing gap emerges. Although panelists have a strong global data center appetite, the tempo and scale of these projects are forcing traditional lenders.
“Considering the volume and quantum of the ongoing structure, the data center exposure, which is the cost of fulfilling this capacity, is definitely forced around the data center exposure,” Moorjani from Capitaland Investment. He said.
According to Columbia Business School, a hyper -scale facility with a large data center costs $ 12 million per Megawatt and modern hyper -scale data centers vary between 150 to 300 megawatts. AI -centered facilities exceeding 1 Gigawatt capacity will require billion dollar investments.
A Gigawatt 1,000 megawatt power and a megawatt is 1 million watts.
Moorjani, “I think the banks are becoming increasingly a little nervous.”
Boston Consulting Group He predicts that hypeners should invest about $ 1.8 trillion between 2024 and 2030 to meet the demand for AI and cloud.
“So the biggest question mark for the real estate community: Is there enough capital right now?” JLL’s crow said.
Panelists also stated that the rise of artificial intelligence may reduce the number of personnel of companies and that the physical real estate could reshape the office area, especially as the office footprint needs.
Property Consultancy Savills, report This year, published in September, it envisaged a slow recoil in global real estate investments. Global commercial real estate investments are expected to increase by 8% in 2025 since last year and will be far below 27% previously estimated by the company.
According to the report, many developers face obstacles such as increased construction costs, financing restrictions, labor shortages and regulatory complexity. Nevertheless, the majorly unvtensed capital pools continue, and major institutional players show a sign of abandoning real estate as a basic class of being.
