60 seconds on why data centres matter for real estate investors
Demand for data from sectors such as the gaming industry and high frequency traders can benefit real estate in global cities.
We know not all cities are equal. We also know that there are certain cities which in the future are going to be much stronger than others. But, within that, we also think there are elements of real estate sub-sectors that are not created equally either.
One area that we have particular interest in is data centres. Demand for, and the creation of, data is a trend that is growing very strongly. In fact, every two to three years, the amount of data that is produced through new technology is doubling.
This data needs to be housed and transferred through data centres, and these data centres need to be located in and around some of the world’s strongest cities.
We're seeing very strong demand from two industries in particular: the gaming industry and high frequency traders. A reduction in latency and the need to be on super-fibre highways are driving this demand.
Our view as real estate investors is that you need to be positioned in the strongest global cities, but also in very specific sub-sectors in terms of real estate in those global cities.
This communication is marketing material. The views and opinions contained herein are those of the named author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds.
This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroder Investment Management Ltd (Schroders) does not warrant its completeness or accuracy.
The data has been sourced by Schroders and should be independently verified before further publication or use. No responsibility can be accepted for error of fact or opinion. This does not exclude or restrict any duty or liability that Schroders has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions.
Past Performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.
Any sectors, securities, regions or countries shown above are for illustrative purposes only and are not to be considered a recommendation to buy or sell.
The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. Forecasts and assumptions may be affected by external economic or other factors.
Issued by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registered Number 4191730 England. Authorised and regulated by the Financial Conduct Authority.