The Next Asset Class Boom Very Few People Are Talking About

[Justin Moy]

One of the great parts of real estate investing is all the niches and strategies you can invest in. Keeping track of asset classes and their cycles is huge for a passive investor to find success investing. In today’s episode, I’m going to go over the next asset class that I think will be the boom over the next few years.

An asset class is the type of property you invest in, multifamily is an asset class, self storage, short term rentals, office space, strip malls…all of these are different asset classes and all have their pros and cons.

Picking an asset class should be a mixture of your comfortability with that class, the opportunity, and the market cycle for that asset class.

The next big asset class I think we’ll start to see is data centers.

Data centers are projected to continue growing with the huge expansion of AI, in the last year alone demand shot up 61% for high end data centers and that’s just for the large companies, the Amazons, Facebooks, and Microsofts of the world.

That doesn’t include emerging companies or anybody else that needs data centers for non AI related ventures.

With supply chain issues data centers got enormously backed up, it was hard to get computer chips for cars let alone the extremely sophisticated computer chips and technology for running massive data centers.

As AI and emerging technologies continue to grow at an exponential rate this demand will continue to push, and will likely continue outgrowing supply and the ability to create new, modern data centers.

It’s an asset class we’re looking at and continuing to learn about and collect data on and it’s not something we’ve invested in yet, but I do think that could change as that industry becomes a bit more stable and predictable.