Developers Race to Keep Up With AI’s Data Center Land Grab

As featured in "Connect Money"

By Joe Palmisano, Connect Money, 3 June, 2026

As artificial intelligence continues to accelerate demand for data centers across the United States, RREAF Holdings Chairman & CEO Kip Sowden recently shared his perspective on how digital infrastructure is reshaping real estate investment, development strategies, and housing demand.

Read more below about how RREAF views the intersection of data center growth, infrastructure investment, and long-term real estate fundamentals.

According to Sowden, the rapid expansion of AI-related data center development is changing the way developers evaluate potential sites. While traditional factors such as connectivity and location remain important, access to reliable power infrastructure has become a critical consideration.

"The AI boom is forcing developers to think more like infrastructure operators than traditional real estate investors," Sowden said.

As demand for computing power grows, developers are placing greater emphasis on grid capacity, transmission infrastructure, water access, and utility coordination. Sowden noted that power availability has become one of the most important underwriting variables in the development process, requiring extensive due diligence before capital is deployed.

At the same time, RREAF continues to see opportunities in markets where infrastructure investment supports broader economic growth. Sowden emphasized that data center development can generate demand across multiple sectors, creating long-term benefits for residential real estate and hospitality assets.

"When a market attracts meaningful digital infrastructure investment, it often creates a broader employment ripple effect across engineering, construction, operations, logistics, and professional services," Sowden said.

RREAF remains particularly focused on markets where infrastructure investment and population growth reinforce one another. According to Sowden, these locations tend to offer the strongest long-term fundamentals for multifamily development and investment.

The discussion also highlighted RREAF's outlook on housing demand surrounding data center expansion. Sowden believes Class B multifamily communities and build-to-rent developments are well positioned to benefit from the diverse workforce generated by major infrastructure projects. In addition, extended-stay hotels can play an important role in supporting contractors and specialized labor during the construction phase of large-scale developments.

Looking ahead, Sowden noted that institutional investors increasingly view stabilized data centers as critical infrastructure assets, while development opportunities continue to attract capital seeking exposure to long-term digital growth trends.

As technology, infrastructure, and real estate become increasingly interconnected, RREAF continues to evaluate opportunities where population growth, employment expansion, and infrastructure investment align to create durable long-term value.

We appreciate and thank Connect Money for featuring Kip Sowden and RREAF Holdings and for providing insight into how AI-driven data center growth is influencing real estate development and investment strategies.