@abirhasan1684
⚡️ Investors pile into data centers despite uncertain exits
A new PitchBook analysis shows investors are pouring record amounts into data-center development even as traditional exit paths remain weak or nonexistent.
🖱 Capital is shifting toward ground-up builds, with investors chasing AI-ready, high-density facilities instead of buying existing centers.
🖱 Demand from hyperscalers and AI labs is driving the surge long-term leases with Big Tech are now seen as the strongest de-risking mechanism.
🖱 Despite a frozen secondary market, developers are relying on structured debt (ABS/CMBS) and recapitalizations to extract liquidity.
🖱 Some funds expect a future exit wave in 2027–2028, once today’s projects stabilize, though buyers remain scarce for now.
🖱 Power constraints, regulatory bottlenecks, and bond-like yields on stabilized assets remain the biggest risks for investors piling in.
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