Episode 177: Data centers: What is driving the surge in demand and how can insurance investors benefit?

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, sits down with Jeff Menz and Casey Miller, both Managing Directors of Portfolio Management at Principal Real Estate Investors, to delve into the fast-growing data center sector. They discuss what constitutes a modern data center, the key drivers behind its rising demand—such as AI, 5G technology, and the Internet of Things—and the types of tenants typically involved, including hyperscale users like Amazon and Google. Jeff and Casey also highlight important considerations for insurance investors, such as infrastructure needs, the long-term nature of data center leases, and how these investments can provide stable, bond-like returns. They emphasize the sector's resilience and continued growth potential, making it a compelling opportunity for insurance asset managers.