The global real estate market for data centers (DCs) is experiencing an unprecedented boom, which many analysts compare to a “gold rush.” The driving force behind this phenomenal growth is artificial intelligence (AI), which is not just increasing demand but qualitatively transforming the entire industry. For real estate investors, this opens up unique opportunities that, however, require a deep understanding of market specifics, new approaches to DC design, energy supply, and, crucially, the selection of land plots for DCs. The exponential growth in demand for computing power from AI applications is leading to multi-trillion dollar investments in digital infrastructure and, consequently, in real estate for DCs.
This analysis examines how AI is reshaping the global investment map and where new centers of attraction for capital in DC real estate are forming today.
AI as a Driver of Demand for Specialized Real Estate
Artificial intelligence places orders of magnitude higher demands on computing resources compared to traditional IT workloads. Training one large AI model can require over 1.7 million kWh of electricity, and the average workload for AI training requires about 30 MW of continuous power. This colossal appetite of AI for data and computation is transforming into an acute need for the construction of an increasing number of specialized DCs capable of housing high-density equipment and ensuring its uninterrupted power supply and cooling.
This directly impacts the real estate market:
- Growing demand for land: Large plots are required for the construction of new DC campuses, often near powerful energy sources and backbone communication networks.
- Specialized buildings: DC design for AI workloads implies increased power density per rack (up to 130-250 kW by 2030) and the implementation of liquid cooling systems. This dictates special requirements for building construction, their height, floor load capacity, and ventilation systems.
- Energy consumption: Global DC energy consumption could double by 2030, reaching the consumption level of a country like Japan. Energy availability is becoming a key factor in choosing a DC location.
Tech giants such as Microsoft, Amazon, Google, and Meta are investing hundreds of billions of dollars in AI infrastructure, creating huge demand for DC real estate. The large-scale Stargate project, with a budget of $500 billion, also underscores the scale of these needs. This capital is also attracting other investors, including real estate investment trusts (REITs) specializing in DCs.
Investment Hotspots: Where to Look for Opportunities in DC Real Estate?
The DC boom, driven by AI, is changing the investment attractiveness criteria for regions. Access to large volumes of electricity, developed infrastructure, and government support are coming to the forefront.
A. The Middle East: Epicenter of DC Real Estate Growth
The DC market in the Middle East and Africa (MEA) is projected to reach $19.89 billion by 2030 (CAGR 14.93%). Global cloud giants are actively investing in creating cloud regions in Dubai, Abu Dhabi, Riyadh, and Doha. Countries in the region are using hydrocarbon revenues for investments in digital infrastructure and AI DCs.
Table 1: Key DC Projects in the Middle East (Focus on Scale and Real Estate Investment)
| Country | Key Project/Operator | Scale/Capacity | Real Estate Features |
|---|---|---|---|
| UAE | AI Campus in Abu Dhabi (Stargate UAE) | 5 GW (total) | Largest AI infrastructure deployment, requiring extensive land plots. |
| Khazna Data Centers (Ajman, Mafraq, Masdar City) | Multiple data halls, new facilities | Expansion of existing and construction of new campuses. | |
| Saudi Arabia | DataVolt/Neom (Oxagon) | 1.5 GW | $5 billion investment in a campus powered by renewables, requiring large territories in a new economic zone. |
| HUMAIN/NVIDIA AI Factories | Up to 500 MW | Creation of large “AI factories,” demand for prepared sites. | |
| Total investments in DCs | >$21 billion (March 2025) | Massive capital injections into the construction of new DC real estate facilities. | |
| Qatar | Ooredoo Data Center Services market development | Growth to $259 million by 2029 | Need for plots for new DCs to support the digital economy. |
Export to Sheets
Key takeaways for the Middle East real estate market: This region offers significant opportunities for investment in land for DCs and construction due to large-scale government programs and capital inflow. It is important to consider local regulatory requirements when searching for optimal locations.
B. Southeast Asia: Tapping into Digital Growth
Indonesia
Indonesia’s DC market will reach $3.79 billion by 2030 (CAGR 7.99%). The AI DC segment will grow to $1.44 billion (CAGR 16.91%). Key players, including Equinix and Microsoft, are actively investing in the construction of new DCs, especially in Jakarta and Batam. The government offers tax holidays and simplifies land ownership for DC projects.
Key takeaways for the Indonesian real estate market: Despite bureaucratic challenges, a large domestic market and government support make Indonesia attractive for investments in DC real estate.
Thailand
Thailand’s total DC market is projected to reach $3.19 billion by 2030 (CAGR 12.66%). The national AI strategy envisages significant investments in digital infrastructure, including DCs. Major projects, such as the Giga-DC hub by GIP-BlackRock and CP-True IDC ($3-$5 billion), and the AI DC by Beijing Haoyang (300 MW), indicate high demand for prepared sites. The cost of DC construction here is lower than in some neighboring countries.
Key takeaways for the Thai real estate market: Thailand’s strategic focus on AI creates favorable conditions for investors in DC real estate.
C. Promising Hubs: Turkey and Cyprus
Turkey
Existing DC capacity is ~120 MW, with another ~40 MW planned. Istanbul is the main center. Khazna Data Centers plans an AI-compatible DC in Ankara (up to 100 MW). Its geographical position and the growth of AI talent are attracting investment.
Key takeaways for the Turkish real estate market: Turkey is becoming an important connecting link. Sites in strategically important locations, such as Istanbul and Ankara, are promising for the construction of modern DCs.
Cyprus
Cyprus aims to become a Mediterranean data gateway, attracting players like Khazna, Plug and Play, and Tenstorrent. Its EU member status and compliance with the EU AI Act create a secure environment for data and AI development.
Key takeaways for the Cypriot real estate market: Regulatory predictability and strategic location make Cyprus interesting for investments in real estate for niche DCs and R&D centers.
Key Real Estate Aspects for DCs in the AI Era
Energy Supply – The Top Priority When Selecting a Site
The rapid growth in DC energy consumption, especially for AI workloads, makes access to powerful and reliable energy sources the main factor when choosing a land plot for a DC. Delays in connecting to power grids can reach several years. Real estate investors need to carefully assess the energy infrastructure of a location. There is growing interest in sites that allow the use of renewable energy sources (RES) or the placement of small modular reactors (SMRs).
Land, Design, and Sustainability
- Land: Demand for large, prepared sites with access to energy and communication networks is growing. The cost of land near major energy hubs and in developed DC clusters is increasing.
- Building Design: Requirements for high power density and liquid cooling affect the design of DC buildings. This includes ceiling heights, floor strength, ventilation, and fire suppression systems.
- Sustainability: The concept of “Sustainable AI” is gaining momentum. Investors are increasingly paying attention to real estate that allows for the construction of energy-efficient DCs using RES.
Conclusion: Navigating the DC Real Estate Market
The global AI DC boom is ushering in an era of “intelligent infrastructure,” where real estate for DCs is becoming one of the most sought-after and strategically important assets. This market is complex and requires deep expertise in technology, energy, and, of course, real estate. Understanding regional specifics, regulatory nuances, and technological trends is key to making informed investment decisions in this dynamically developing sector. Access to reliable energy sources and choosing the right location are becoming more important than ever for the success of DC projects.
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