Data centres have moved from a niche property segment to essential infrastructure, fuelled by cloud computing and a continued rise in AI-related demand. 

In this podcast, Pendal head of listed property Peter Davidson explains the scale and economics of the build-out, where property investors can potentially capture returns, and why access to power, capital and suitable sites matters.

He also examines the growing role of data centres in Australian listed property and the risks investors should weigh when assessing developers and valuations.

Here's an excerpt from the podcast:

“Of AI capex, about a quarter of it is data centres.”

“The pure juice in data centres, from a property investor’s point of view—the great returns at the moment—is really to be had in development.”

“The biggest constraint by far is the power—having the power and the power availability.”

“Data centres just become another sleeve of the opportunity set.”

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