Data Centers Are a Core Asset Now - The Real Constraints Are Power and Pushback, Real Estate Pros Say

Written by:

Heather Hook

Date:

25 May 2026

KeyCrew Studio

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Market Outlook: Commercial, April 2026. Featured responses from KeyCrew’s 3,500-expert intelligence network.

Two years ago, data centers were a specialty asset class most institutional investors politely ignored. In 2026, they’re a core allocation – and by one estimate, accounted for roughly a third of global private real estate funding last year.

In responses collected by KeyCrew Media in April 2026, practitioners found broad agreement that the demand is real and durable. They disagreed sharply on whether the buildout will actually happen at the scale capital is now expecting.

From niche to core asset

The structural shift is settled, the practitioners say. Capital has followed compute.

“What shifted is that AI stopped being a conversation and became an infrastructure requirement. When every major enterprise suddenly needs compute at scale, the underlying real estate that houses that compute becomes strategic – not niche. For the first time, capital flowing into data centers has surpassed capital flowing into office buildings. That’s not a trend. That’s a structural realignment.”
— Daniel Kaufman, President, Kaufman & Company (Los Angeles, CA)

“Institutional capital has followed the demand. In 2025 alone, data centers accounted for roughly a third of global private real estate funding, which tells you how quickly they’ve moved into the core asset category.”
— Zach WalkerLieb, Real Estate Professional

“There is overwhelming demand driven by AI acceleration.”
— John C. Coe, Principal, Coe Enterprises (Washington, DC)

“I do think they both remain niche – most folks won’t play in them – and appetite will be sustainable. The money the companies have to spend on them is not going away soon.”
— Will Mitchell, CEO, Rabbet

The real constraints have shifted from capital to infrastructure

The bullishness comes with a near-universal caveat: the bottleneck has moved.

“Through Project Zero, we’ve been commissioning modular micro data centers starting in Detroit and expanding into Texas, Florida, the Northeast, and California – specifically because we see distributed edge computing as a repeatable, scalable model. But power availability, grid interconnection timelines, and cooling infrastructure are the actual constraints, not capital.”
— Daniel Kaufman, President, Kaufman & Company (Los Angeles, CA)

“The current appetite is not sustainable because consumer and homeowner pushback is fierce. The drain on natural resources, especially water, is a major factor. Although this is a hot topic now, site availability and citizen response will be a long-standing negative driver for sustainability.”
— Melissa Connell, Founder & Broker, Palm & Pine Realty Group (Central Florida)

“Will this be indefinite? With innovation in nuclear energy creation, the industry may move toward this power source to address the electrical power demand.”
— John C. Coe, Principal, Coe Enterprises (Washington, DC)

“A very fluid situation, and the public – residents – are becoming aware of the potential for electric cost increases, brownouts, and environmental hazards.”
— Steven J. Kozusko, Century 21 Thomson & Co (Red Bank, NJ)

“In Kansas City, the secondary impact is often more interesting than the data center itself. The data center creates demand for manufacturers, warehousing users, component suppliers, and contractors that support the buildout. What’s cooling off is the idea that you can just build a generic spec industrial anywhere and assume it works. If a parcel has serious power and water characteristics, a data center buyer may reprice it out of reach for a traditional warehouse developer.”
— Logan Crews, MWCR Advisors (Kansas City, MO)

The takeaway

Across the responses, the consensus is clear: capital has solved itself. The next phase of the data center buildout will be decided by the grid, the water, and the people who live next door.

About The Responses:

Responses are part of KeyCrew’s recurring research series across residential, commercial, and technology real estate, drawn from a 3,500-expert intelligence network. Quotes come from live interviews and written responses, selected on editorial merit.

Disclosure: Some featured experts may have a commercial relationship with KeyCrew Media. This does not influence selection.

About KeyCrew

KeyCrew Media is an expert-sourced real estate intelligence platform that publishes market insights through its portfolio of digital properties and syndicates to 300+ local and national publications.

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Disclosure: Individuals or companies mentioned may have a commercial relationship with KeyCrew.