AI-driven demand transforms property investment, unlocking new value for forward-thinking REITs
AI is fueling an unprecedented surge in demand for data centre capacity, placing data centre REITs at the forefront of a technological transformation that is reshaping the public real estate sector, according to a recent white paper by Hazel View Investments, The Impact of AI on Public Real Estate.
McKinsey & Company said that companies are projected to invest US$677tn in global AI by 2030, with AI workloads expected to grow 3.5 times faster than non-AI workloads over the same period.
This explosive growth is creating a significant supply-demand imbalance.
As reported by CBRE, North American primary markets have seen net absorption and pre-leasing remain strong in the first half of 2025, with 74 percent of total under-construction capacity already committed.
Vacancy rates continue to hover at historic lows, and double-digit revenue growth persists for data centre REITs.
AI’s impact extends beyond data centres.
The rapid evolution of mobile applications, powered by AI, is driving demand for advanced cell tower infrastructure.
As per Ericsson, the global mobile AI app market is expected to reach US$44bn by 2030, while mobile data traffic is set to grow at a compound annual growth rate of 15 percent.
Carriers are prioritizing the rollout of low-latency 5G standalone networks to accommodate this surge.
Operational efficiency is another area where AI is unlocking value.
A recent analysis of 203 occupational categories found that roughly 21 percent of the US workforce could be affected by AI-driven automation, with the potential for significant cost savings.
Several REITs have already begun integrating AI-powered analytics and automation to streamline operations, reduce costs, and enhance tenant engagement.
At this inflection point, REITs that strategically embrace AI—both as a demand driver and as an efficiency tool—are well positioned to capture substantial value.
