This is one of the biggest capital shifts happening in the built environment today. We are already seeing this across our work. Data center demand is no longer theoretical. It is changing what gets built and where capital goes.
We are working with developers to evaluate sites, reposition land, and move these projects forward.
Here’s what most developers don’t realize yet:
-
Nearly 1 out of every 3 real estate dollars is now going into data centers, according to Colliers’ Global Investor Outlook
-
That share has doubled in just a few years
-
Investment is up roughly 42% in recent data center spending forecasts from Gartner
-
Compared to ~4–5% for broader construction and services
This shift is already changing what gets funded, what gets built, and what moves forward.
Competition Is Increasing Across Sectors
While many developers are still focused on traditional asset classes, more capital is moving into data centers, and not everyone is keeping up.
For multifamily, hospitality, and mixed-use, this is not theoretical. It is already affecting which projects get pursued and which get financed.
These sectors are now competing with data centers for:
-
Capital
-
Land
-
Power
-
Labor
This pressure is only accelerating as capital flows into the space.
- Big Tech alone is expected to spend hundreds of billions annually on AI and data center infrastructure
- Total projected investment could reach into the trillions over the next decade
- Global capacity is expected to at least double to keep up with demand
**BASE4 Data Center Campus Concept | Early-Stage Design**
Physical Constraints Are Emerging
Development is starting to run into real limits:
- Infrastructure capacity
- Suitable land
- Power availability
These are not financial constraints. They are physical constraints.
This is where experienced design and delivery partners become critical. And it is where we are already focusing our efforts.
How BASE4 Approaches This Opportunity
Through our work in multifamily, hospitality, and large-scale development, we already deal with many of the same site, infrastructure, and delivery challenges.
This is one of the biggest development shifts happening right now.
We are already active in this space:
- Developing early-stage data center and campus concepts
- Evaluating power-driven site viability and infrastructure constraints
- Working with developers to reposition land for data center use
We’re launching a separate Data Center Insights newsletter.
This is where we’ll be sharing everything related to this space going forward.
If you don’t sign up, you will miss these updates.
Thank you,
Blair Hildahl
Blair@hotelsuniversity.com
608.304.5228