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Kevin O’Leary has recently noted the increasing demand for data centers, describing them as a notable combination of real estate and technology with considerable potential.
“The demand is off the charts,” O’Leary said in a video about the future of AI and tech infrastructure. “If I were 25 today, I'd focus on two massive opportunities: AI implementation and data center development.”
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What Are Data Centers and Why Are They Booming?
Data centers are the backbone of today's digital world. They store and handle huge amounts of information used for things like social media and AI tools. As more people and businesses rely on cloud services, smart technology and the Internet of Things (IoT), the need for data centers has grown fast.
When it comes to real estate, people usually think about homes, offices or stores, but data centers are different and bring something new to the table. They mix the steady nature of real estate with the fast growth of technology.
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O’Leary explains that data centers are more than just places to rent out. They also have special systems to keep things cool, constant power supplies and security to protect important information. They are key for running AI programs, which need much computer power and storage space.
“Real estate meets tech in the most lucrative way. This is where the future's heading,” O’Leary said. “Don't miss it.”
The Shift to Multistory Data Centers
Traditionally, data centers have been sprawling, single-story buildings in remote areas. However, the industry is going vertical with land prices soaring in prime markets and the need for more capacity. Multistory data centers are now being built in urban and suburban areas, blending high-tech infrastructure with efficient land use.