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Data Centers Are Experiencing Increasing Investor Interest—What’s the Reason?

12.09.2024 18:00 1 min. read Kosta Gushterov
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Data Centers Are Experiencing Increasing Investor Interest—What’s the Reason?

In a recent interview with CNBC, Jeff Blau, CEO of Related Companies, praised data centers as a transformative asset class in real estate.

Blau referred to them as “the most incredible asset class” of his career, highlighting their unique characteristics such as high energy demands and limited supply, which contribute to their significant value.

He emphasized that building a data center can cost between $4 billion and $5 billion, with securing adequate energy being a fundamental challenge that prevents oversupply.

Blau noted that this asset class is very unique. According to him, each of these structures can cost $4 billion to $5 billion.

He added that energy requirements are unprecedented in this industry, noting that the difficulty in securing energy creates a constraint that prevents oversupply of these facilities.

Recently, Related Companies invested in Applied Digital, a company specializing in Bitcoin mining and high-performance computing. According to Miner Mag, 83% of Applied Digital’s revenue comes from hosting Bitcoin mining operations.

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.

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