Data centers on high demand, rent increases amid AI race
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Tech companies prefer storing data on public cloud to traditional storage.
Big cloud providers like Amazon benefited from significant rent discounts, paying nearly half the rate compared to other companies due to their leverage in cloud space.
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Tech companies poured large investments to AI projects.
For AI-related data, data centers are preferred over public cloud due to security and regulatory concerns.
Data center landlords can now hike rent prices.
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Construction timelines are extended due to limitations in construction capacity and ongoing supply chain disruptions.
