Joshua Feinberg discusses the shift in commercial real estate, noting that traditional repurposing of facilities like office buildings and shopping malls is less effective than before.
He highlights the current health of the industrial sector and mentions specific examples, such as decommissioned shopping malls being redeveloped into housing due to a housing shortage.
However, he notes that power availability is now a limiting constraint, indicating that second chances for repurposing are not as straightforward as they once were.
This video is excerpted from the podcast Ep. #62 Emil Sayegh, Serial Tech and Data Center CEO of Profit Growth Insights | Data Center Go-to-Market Podcast.
Outline
Purpose-Built Data Centers vs. Repurposing Existing Legacy Data Centers
- Joshua Feinberg discusses the growing interest in purpose-built data centers, noting that traditional repurposing methods are less effective than before.
- He highlights the challenges faced by hyperscalers when decommissioning facilities and mentions that operators might take over for the right price.
- Joshua points out the instability in commercial real estate, particularly in office spaces and retail, which are being rethought due to hybrid and remote work trends.
- He notes that industrial real estate is currently the healthiest part of the market, while other sectors struggle to adapt to new needs.
Challenges in Repurposing Legacy Data Centers
- Joshua mentions specific examples of decommissioned shopping malls in his geographic area that are being redeveloped into housing due to the high demand for housing.
- He discusses the Sears headquarters in Chicago, which was considered for redevelopment into a data center campus due to its excellent utility power.
- Joshua emphasizes that second chances for repurposing legacy data centers are not as straightforward as before, especially with utility power becoming a limiting constraint.
- Emil Sayegh agrees, noting that power availability was sufficient a decade ago but is now insufficient, highlighting the evolving challenges in repurposing.
Resources
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