The financing of the $1.3 trillion data centre market is developing into a defining theme in the commercial real estate industry. After billions were invested in this sector, the volume is now manifesting in trillions of dollars. This sector, whose vocabulary and functioning are still unknown to many, is increasingly coming into focus. San Diego-based AI analytics firm Atrium recently unveiled an interactive data platform called “Who Finances America’s Data Centers”, which makes the financial flows behind this booming market transparent.
Atrium's platform offers detailed insights into individual transactions, such as the $23 billion credit facility for Coreweave, provided by 38 different lenders. Similarly, the $20 billion financing for DigitalBridge and IFM by 24 lenders is highlighted. At the same time, the platform analyses the extensive commitment of non-bank lenders like PIMCO, which originated $23 billion in financing, as well as that of large corporations such as Amazon, Microsoft, Google, Meta and Oracle. These five firms alone are responsible for $223 billion in long-term debt and credit facilities.
The expansive activity in the data centre sector is occurring at a time of rising construction costs. While the construction sector may be experiencing a slowdown in other areas, the explosive growth of data centres is apparently compensating for this, as a recent report from Skanska highlights. Tom Park of Skanska noted that the market is currently sending mixed signals, but high project activity is observable in data centres, semiconductors and life sciences. He explained that unprecedented demand in mechanical, electrical, plumbing and steel is driving up lead times and costs.
At the same time, we are observing a strong increase in AI companies increasingly expanding outside Silicon Valley. A CBRE report confirms that New York City has surpassed San Francisco for the first time as the largest technology hub in North America. Although technology accounts for 10 per cent of the total workforce in San Francisco and only 4.2 per cent in New York City, the respective magnitudes of the metropolises mean that New York, with 394,300 jobs, surpasses San Francisco, which has 375,730 jobs. This development is also reflected in the office market, where AI firms leased approximately 800,000 square feet of office space in New York in the second quarter of 2026, according to Colliers.
The office market, long considered less attractive, is experiencing a remarkable renaissance. As recently as the second quarter of 2025, only 4 per cent of real estate investors viewed offices as a preferred investment. However, current data from SitusAMC shows that this share has risen to almost 11 per cent. In the first quarter of 2026, it even reached 16 per cent. Peter Muoio, Head of SitusAMC Insights, noted that investment conditions in the office sector have improved over the past eighteen months and a renewed interest is evident. This development explains why REIT earnings in the second quarter were more robust than expected.
A report from Hoya Capital spoke of surprisingly strong REIT earnings, which represented one of the clearest reporting periods in recent history, with unusually broad forecast upgrades, improved property-level fundamentals and relatively few disappointments. This manifests itself in successful transactions. Thor Equities recently acquired 1359 Broadway from Empire State Realty Trust for $218 million, only one month after market launch. Similarly, Lincoln Property Company, Saber-Hightower and Waterfall Asset Management acquired four National Resources properties, including a 270-acre business park in East Fishkill, N.Y., totalling approximately 4 million square feet for $450 million.
Other sectors are also showing positive developments, particularly retail and multifamily. In retail, Williamsburg, Brooklyn, is seeing a number of significant lettings: Players Club International leased 1,875 square feet at Yosef Beers' 17 Kent Avenue, Bylt Basics 2,085 square feet at L3 Capital's 108 North Sixth Street, and Zara secured an impressive 22,060 square feet at L3's planned development at 184-192 Bedford Avenue. South Florida is also active, where a consortium received $125 million to finance a mixed-use building in a luxury shopping centre in the Miami Design District. And Vivienne Westwood submitted plans for her new boutique in South Beach.
