SETT Snapshot
July 2025
Welcome to the June edition of the SETT Snapshot!
This month, we turn our attention towards the explosive growth of data centers and its impact on commercial real estate, infrastructure planning and regional economies across the U.S.
IN THE MARKET
Anchor Tenants of the Digital Economy
Data center demand in the U.S. has gone parabolic. Vacancy is near zero in key U.S. markets, and more than 6,000 megawatts of new capacity is under construction - 83% of it already pre-leased. With demand projected to double by 2030, tech giants like Meta, AWS, Microsoft and OpenAI are racing to build massive campuses to power AI and cloud services, often before the chips to fill them are even available.
But, the surge is straining infrastructure. Power access has become the biggest hurdle, with long utility interconnection queues, transformer shortages and multi-year delays forcing developers and users to plan far in advance and find creative solutions for securing power. In addition, water scarcity and fiber connectivity are emerging constraints, especially in rural or drought-prone regions.
This boom is rippling across other real estate sectors. Industrial-zoned land is being acquired for data center development while nearby industrial space is in high demand for logistics, staging and supporting vendors. And housing in secondary markets is tightening as thousands of construction and operations workers move in, driving demand and local service growth.
Key takeaway: Data centers are no longer a niche product. They are becoming the anchor tenants of the digital economy and in the process, redrawing the commercial real estate map across the U.S.
ON OUR MINDS
Crypto goes (more) mainstream. The House laid the groundwork for regulated stablecoins - cryptocurrencies pegged to hard assets, most notably the U.S. dollar. Will this be the catalyst that leads to blockchain and crypto adoption in commercial real estate? If so, how impactful will this adoption be and how long until it truly takes root?
The future is dark. Fully automated Chinese factories operate around the clock with little to no need for humans - or lights. As Amazon is close to using more robots than humans in its factories, how soon until we see these fully automated facilities across the U.S.?
A moment of reflection. With all the uncertainty in the world today, we’re enjoying these grounding insights from Seth Godin on cultivating meaning and reshaping systems (h/t Tim Ferriss).
IN THE SETT
At SETT, we’re proud to work with clients across industries who are making a real difference in their communities. This month, we’re excited to highlight Restart, Inc., a remarkable nonprofit we recently supported during their office relocation.
Based in the Twin Cities, Restart, Inc. helps adults with traumatic brain injuries live more independently. Since 1986, they’ve provided residential group homes and outreach services that support daily living, health management and social integration.
With a strong focus on dignity and long-term care, Restart fills a critical gap in Minnesota’s support system by empowering individuals to rebuild skills, regain autonomy and stay connected to their communities.
It was a privilege to work with Restart, whose nearly 40 years of service have empowered so many to take meaningful steps toward healing.
To learn more or support their mission, visit restartincmn.org.
We remain grateful for your continued partnership and trust. Whether you're exploring new opportunities or navigating strategic decisions at the asset level, our team is here to support you every step of the way. If you’d like to take a deeper dive into any of the topics covered this month, don’t hesitate to reach out - we’re always happy to connect.