Quick Take

In a recent CNBC interview, Jeff Bleau, CEO of real estate giant Related Companies, highlighted data centers as a groundbreaking asset class in the real estate industry. He described them as “the most incredible asset class” of his career, emphasizing their unique power demands and scarcity, which prevent oversupply. Bleau explained that each data center can cost $4-5 billion to construct, and securing the required power is a significant constraint, making these facilities highly valuable.

“This [data center] asset class if very unique. Each one of these buildings could cost $4-5B. You’re talking about power numbers we’ve never encountered in this business.

And what’s amazing about it is them is that that the power, which is difficult to get, becomes the constraint, so you don’t have oversupply of these data centers.”

Related Companies recently invested in Applied Digital, a data center operator specializing in Bitcoin mining and high-performance computing. According to Miner Mag, 83% of Applied Digital’s annual revenue comes from hosting Bitcoin mining operations. This investment, led by Related Companies and tech giant NVIDIA, raised $160 million.

Applied Digital’s stock price surged by 85% in just five days, reflecting the growing investor interest in the company. With the increased institutional adoption of digital assets and the increasing need for high-performance computing, data centers are emerging as a key asset class with significant potential for future growth.