Digital Core Reit bullish on tight supply, strong demand for data centres

RENTAL rates are rising for data centres across the United States and Europe, as supply falls on concerns over optimal land use and the stress that data centres place on electricity grids.

There is also strong demand from companies digitalising and adopting artificial intelligence, which Digital Core Reit (DC Reit) believes should be a net positive for its data centre-focused portfolio.

“We’re only doing more digitally, and at the same time, you’ve got very constrained supply in the markets that matter to us,” said John Stewart, chief executive of the manager of the real estate investment trust (Reit). “What that means is you are experiencing significant increases in pricing.”