Rising costs will not halt data center construction boom, Citi says
In short
Ongoing momentum in data center construction is projected to persist despite mounting expense headwinds. Citi's evaluation suggests that elevated expenditure requirements will not derail current industry expansion plans. Development pipelines are anticipated to remain robust as market participants continue moving forward with new builds.
Key points
- Expanding facility pipelines reflect an appetite for infrastructure that outweighs rising…: Expanding facility pipelines reflect an appetite for infrastructure that outweighs rising construction costs.
- Market participants are continuing to advance new projects despite facing elevated budget…: Market participants are continuing to advance new projects despite facing elevated budget requirements.
- Investment in critical digital infrastructure is expected to remain consistent in the nea…: Investment in critical digital infrastructure is expected to remain consistent in the near term.