Not too long ago, railroads reshaped economies and cities. Today, a similar shift is underway, but instead of steel and locomotives, the tracks are fiber and silicon. AI in commercial real estate (CRE) is no longer just a buzzworthy concept. It’s becoming the backbone of economic growth, with “AI factories”, data-driven hubs that power machine intelligence, emerging as the new infrastructure of our time.
Let’s be honest: the return-to-office debate is yesterday’s headline. The real story is how AI in CRE redefines what makes a building valuable. Brookfield recently called AI factories the “new railroads,” projecting a multi-trillion-dollar opportunity. They’re not wrong. These hubs aren’t just data centers with shinier branding—they’re the industrial-grade infrastructure where future productivity and innovation will be manufactured.
The challenge is scale. Running advanced AI models demands staggering amounts of power and connectivity. Eric Schmidt once warned that AI could consume nearly all available electricity. That’s not a side note—it’s a systems-level challenge CRE leaders must tackle head-on. Delivering value now means more than filling square footage. It’s about building the resilient, flexible, and sustainable infrastructure where the next economy gets made.
Think of it this way: railroads didn’t just move goods; they reorganized entire economies, rewrote work patterns, and reshaped cities. AI in CRE is set to have the same impact. Properties positioned as AI-ready, integrating energy resilience, digital connectivity, and tenant-centric design, aren’t just “nice to have.” They’re the future baseline.
Here’s the insider perspective: CRE leaders who frame their portfolios as strategic infrastructure for AI, not just space, will win. AI may feel abstract, but its physical footprint is concrete. Data centers, AI factories, and digitally enabled campuses are where innovation gets built.
The railroad barons of the 19th century didn’t just bet on steel; they bet on the future. Today, CRE leaders face the same choice. AI in commercial real estate isn’t coming. It’s already here. The opportunity is to build for it, boldly and human-centrically, right now.
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