The global race to build infrastructure for the AI boom is hitting a potential financial wall. Greg Goodman, CEO of the industrial property giant Goodman Group, has issued a stark warning regarding the data centre market. As construction values have surged from US$60 billion in 2020 to US$340 billion by 2025, Goodman suggests that heavy reliance on private equity leverage and rising refinancing costs are creating an unsustainable environment. He predicts a wave of forced asset sales and industry consolidation over the next two to four years as banks become increasingly selective with lending. While Goodman Group remains heavily invested in the sector, they are prioritizing a conservative, low-leverage strategy and strategic partnerships with institutional investors like the Canada Pension Plan Investment Board. For GTA investors, this serves as a reminder of the risks inherent in capital-intensive commercial developments during periods of high interest rates. Read the full analysis at Financial Post.<\/p>\n
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