GoKawiilDigital Realty CEO downplays AI slowdown risk to data center demand
Digital Realty CEO Andrew Power said warnings of a potential AI development slowdown from firms like Anthropic, OpenAI and xAI would not mean a halt to data center real estate demand. He argued that non-AI digital transformation and cloud computing growth remain strong drivers for his business, even as Digital Realty and Equinix shares fell on Monday amid AI slowdown fears.
GoKawiil's interpretation of the reporting above, not reported fact.
Data center real estate has become deeply tied to AI's growth trajectory, with McKinsey estimating AI could drive 70% of global data center demand by 2030 and JLL projecting $3 trillion in related real estate investment over five years. Power's comments suggest that even if AI investment cools, diversified demand from cloud and enterprise IT could cushion the sector, easing investor fears of a broader real estate fallout.
- Digital Realty's CEO says an AI slowdown wouldn't be catastrophic for data center real estate demand.
- Non-AI cloud computing and digital transformation remain significant growth drivers for the sector.
- Digital Realty and Equinix stocks dropped Monday on fears tied to AI development slowdown warnings.
Source: cnbc.com — Diana Olick, 2026-09-15
Published there as: “Potential AI slowdown is not ‘end of the world’ for data center real estate, says Digital Realty CEO”
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