Executive Summary

1. CLOUD COMPUTING AND GENERATIVE AI ARE SUPERCHARGING DEMAND The boom in cloud services and the surge of Generative AI have set data centers on an upward trajectory. In 2024, U.S. data center absorption is on pace for over 7,300 MW, a 29% increase in total U.S. inventory.
2. SUPPLY STRUGGLES AGAINST POWER BOTTLENECKS The race to meet this demand is not simple. Power infrastructure is lagging, land that fits data center requirements is scarce, and the supply chain is strained, illustrated by record-low national vacancy rates of just 1.7% in Q3 2024.
3. GOVERNMENT AND PRIVATE SECTOR TACKLING ENERGY GAPS While Washington and local utilities roll out grid modernization plans, the tech giants are getting creative, with moves towards nuclear energy investments signaling a bold shift in tackling energy constraints.
4. ADAPTABILITY AND ALIGNMENT Strategic collaboration with hyperscalers through tailored designs and powered shells has emerged as a key approach to addressing the growing supply demand imbalance in the cloud and AI landscape. This adaptability strengthens tenant relationships and positions facilities to be future-ready for evolving technologies.

Corscale, LLC and Patrinely Group, LLC are subsidiaries of the same parent company, Crimson Interests, LLC. Affinius Capital owns a minority interest in Crimson Interests, LLC. Another company controlled by certain owners of Affinius Capital has a separate ownership interest, and combined, these companies own a majority interest in Crimson Interests, LLC.