How the data center boom is reshaping commercial real estate

For the first time, U.S. construction spending on data centers has surpassed spending on office buildings, reflecting surging demand for computing power fueled by artificial intelligence and cloud services, Bloomberg writes. 

Developers spent about $3.57 billion on data center projects in December, slightly more than the $3.49 billion invested in office construction, according to federal data.

The shift highlights a broader transformation in commercial real estate as tech giants such as Meta, Amazon, Google and Microsoft expand massive server campuses to support AI workloads. Investors including Blackstone, Brookfield and KKR are pouring billions into the sector, betting that long-term demand for digital infrastructure will continue to grow.

Meanwhile, office development has slowed as remote and hybrid work leave many buildings underused. Data centers, by contrast, often involve multibillion-dollar campuses with long-term leases and complex infrastructure requirements. 

Industry experts say the trend could accelerate as AI adoption expands, reshaping construction priorities, real estate investment strategies and the future footprint of corporate workplaces.

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