INREV’s new research examines the evolving European data centre sector and unpacks its growing relevance as an institutional investment opportunity. In its latest paper, ‘Data Centres: Navigating a fluid asset class’, INREV highlights the strong structural tailwinds driving interest in the sector, assesses the challenges investors face in accessing this opportunity and seeks to forewarn the industry about the risks.
Key highlights:
- Data centres should be viewed as a fluid asset class. It is a mix of real estate, infrastructure and private equity characteristics and is attracting a wide range of investor types for whom the investment opportunity matters more than the asset class categorisation.
- The appropriate investment approach depends on the strategy, lifecycle stage being targeted and investors’ capabilities and preferences. Exposure can range from powered land and development to stabilised core assets or operating platforms.
- The study finds that data centres carry risks with no real equivalent in traditional property. These risks include power and infrastructure constraints, tenant and technology risks, planning and sustainability considerations, and concentration, liquidity and exit risks all requiring careful consideration when underwriting investments.
- Access to specialist expertise is highly important, with investors needing to assess their organisational edge and determine whether they have the capabilities to invest directly or whether partnering with specialist managers, developers or operators offers a more effective route to market.
The paper draws on in-depth expert interviews with investors, fund managers, developers, and operators representing a combined global alternative assets AUM of over €1 trillion. Download the full paper below.
Interested in learning more? Sign up now for our upcoming Data Centres briefing on 22 October 2026, which will cover more insights on this topic.