Data center REIT CEO says real estate ‘not in an oversupply state'

Industry Outlook - The global data center sector is expected to nearly double its capacity from 103 gigawatts to 200 gigawatts by 2030, driven primarily by artificial intelligence workloads, which are projected to represent half of all data center capacity by that time [1][6] - JLL forecasts that the sector will require up to $3 trillion in total investment over the next five years, including $1.2 trillion in real estate asset value creation and approximately $870 billion in new debt financing, marking it as an infrastructure supercycle [5] Company Insights - Digital Realty's CEO, Andy Power, emphasizes that the sector is not overbuilding and is instead responding to long-term technology trends such as cloud computing and digital transformation [7][8] - Power notes that the demand for data centers is significantly outpacing supply, with vacancies at Digital Realty being the tightest ever [9] - Digital Realty is strategically investing in locations where data workloads are high, such as Northern Virginia, Chicago, Dallas, Singapore, Tokyo, Frankfurt, and London [10] Financial Considerations - Concerns have been raised regarding the creditworthiness of tenants, particularly Oracle, which is heavily involved in AI projects [11] - Despite concerns, Power asserts that companies involved in data centers, including Oracle, have strong business foundations outside of AI and are inclined to own their real estate, with data centers currently being owned at about 50% [11][12]