Understanding Market Dynamics in Emerging Data Center Regions

I was dead wrong about data centers... When I started investing in data centers, I dismissed them as "fancy warehouses with good air conditioning." Today, they're at the heart of cloud computing, AI, and global connectivity, and I've spent years catching up to this remarkable evolution. My journey began with a painful truth: - Experience in digital infrastructure? Considerable. - Data center expertise? Practically zero. - Global sector trends and market growth drivers? A complete mystery. During an initial assessment of a hyperscale data center project in West Africa, reality hit me. As we analyzed the development process, reviewed customer pipelines, and evaluated operating KPIs and valuation metrics, I realized: "This isn't just real estate, this is the new utility of the digital age." Everything changed when we abandoned three critical misconceptions: 1. "Data centers are an opportunistic play" 2. "Enterprise colocation is the primary growth driver" 3. "Emerging markets will follow developed market patterns" Instead, we embraced a more forward-looking, strategic approach: focus on markets with the right combination of cloud demand, infrastructure, and regulatory environment that have or will attract hyperscale investment. While others hesitated, we moved decisively, examining power availability, fiber connectivity, and policy frameworks to identify tomorrow's data center hubs. Our methodology transformation: - Analyzed global sector trends comprehensively - Identified the most promising markets - Understood that hyperscalers were driving unprecedented demand The results were significant: 1. Increased exposure to the sector 2. A more diversified global data center portfolio across regions 3. Strategic diversity across data center types and financing instruments The most powerful insight? The old metrics ($/kW, occupancy rates, EBITDA multiples) are dangerously limited. What matters is understanding global sector trends and market-specific dynamics that drive sustainable growth. For those navigating this space, focus on: 1. Understanding global growth drivers and their regional impacts 2. Viewing these assets through an infrastructure lens, not just real estate 3. Mastering the unique economics and KPIs of the sector What has been your experience in the data center sector? #datacenters #ifcinfrastructure

So far this year, the U.S. data center landscape is shifting fast. As power constraints tighten in traditional hubs like Northern Virginia and Silicon Valley, secondary and emerging markets are stepping into the spotlight. Do you agree? Here’s what’s driving the shift and where the real opportunities may lie: 👉🏽 Key Trends: • Explosive Growth: U.S. data center inventory jumped 43% year-over-year in Q1 2025. Atlanta and Phoenix are now among the top four markets. • Hyperscaler Expansion: AI and cloud giants are pre-leasing space in non-traditional markets like Columbus, Des Moines, and Reno to secure power and speed to market. • Design Evolution: Liquid cooling and high-density racks are becoming the norm to support AI workloads. But what are the challenges? • Power Scarcity: Grid capacity is maxed in many metros. Transmission delays are pushing timelines into 2027 and beyond. • Construction Bottlenecks: Labor shortages, permitting delays, and rising material costs are slowing builds. • Cooling and Density Challenges: AI workloads demand new cooling strategies and facility designs, especially in retrofitted sites. So, where’s the opportunity? • Emerging Markets: States like Iowa, Indiana, and Ohio offer cheaper, more available power and faster permitting. This is ideal for hyperscaler and co-lo builds. • Behind-the-Meter Solutions: On-site renewables, gas peakers, and early-stage nuclear (SMRs) are gaining traction to bypass grid delays. • Sustainable Infrastructure: Clean energy integration is now a competitive edge. Why does this matter? AI infrastructure here in the U.S. is being built in places we’re only beginning to notice. Maybe even in a county near you! It’s a dynamic space, and I’m keeping a close eye on the trends and opportunities. What are you seeing in your region or sector? Let me know! 👇🏽

Watching data center growth in LATAM unfold has been nothing short of inspiring. It's a region that's rapidly becoming a powerhouse in digital infrastructure, and I had the privilege of working there during my time at Google—a period that gave me a different perspective on the industry. 🌎🔥 Here's what's happening: 1. **Robust Growth** 📈 The data center market in Latin America is on a trajectory to reach impressive heights, driven by increasing demand for cloud services and connectivity. The numbers are climbing, reflecting a vibrant and expanding industry. 2. **Investment Surge** 💼 Both local and international investments are pouring in, supporting infrastructure development and technological advancements. These investments are crucial for meeting the region's digital transformation goals. 3. **Strategic Expansion** 🌐 Key locations across Latin America are emerging as strategic hubs for data center expansion, providing critical services that bolster economic and technological growth. 4. **Sustainability Focus** 🌱 There's a growing emphasis on eco-friendly practices, with data centers prioritizing renewable energy sources and efficiency. 5. **Talent Development** 🎓 With growth comes opportunity, and there's a significant push towards nurturing local talent to sustain and support this booming sector. It's exciting to see how LATAM is embracing and advancing digital infrastructure—creating new possibilities and bridging connections globally. Thrilled to witness this momentum and curious to see its continued impact on the region's future.