CoStar published an analysis titled 'The Other Side of the Data Center Boom,' examining financial and market risks accumulating alongside record investment in the sector. The piece addresses factors including community opposition, utility cost disputes, water availability constraints, and regulatory uncertainty as headwinds for developers and real estate investors. CoStar covers the commercial real estate and data center leasing market and the analysis is directed at institutional investors and REITs active in the sector. The report arrives as moratoriums, permit denials, and cost-shifting mandates have multiplied across at least a dozen states in 2026.
A CoStar analysis carries weight with institutional capital allocators and REIT investors who fund data center construction; if risk perception shifts in this audience, financing costs for new projects could rise and deal timelines could lengthen. The piece reflects growing mainstream financial-market awareness that the sector faces structural headwinds beyond simple supply and demand.
Named publication CoStar, 'data center boom,' and investment risk framing triggered selection. CoStar's institutional audience distinguishes this from general news coverage and elevates its market-signal value.