A new report from the Urban Land Institute (ULI) and investment manager Heitman argues that access to electricity is emerging as a central driver of real estate value in the age of artificial intelligence. The joint publication, titled “Investment Strategies in the AI Era: Power Is the New Location,” finds that reliable power, transmission infrastructure and digital connectivity are increasingly determining where development is feasible and which markets capture capital.
According to the report, artificial intelligence is reshaping the economics of property investment, with data centers and related infrastructure at the core of this shift. As AI use expands, the need for facilities that can support intensive computing is growing, and that is elevating locations with dependable energy, sufficient transmission capacity and strong network links. These factors, the authors note, are starting to influence long-term value creation across multiple asset types.
The analysis highlights that markets able to deliver new power quickly and at scale may gain a competitive edge in attracting development, investment, jobs and broader economic activity. Abundant energy supply, available transmission capacity and robust fiber connectivity are cited as attributes that could increasingly differentiate regions and sites in investor decision-making.
Laura Craft, global head of portfolio sustainability strategies at Heitman, said the traditional primacy of “location, location, location” is being reframed as AI transforms the global economy. She noted that power availability is becoming just as important as physical location, with access to power, connectivity and technology-ready infrastructure poised to shape future growth patterns and capital flows.
The report also emphasizes that AI’s real estate impact extends beyond data centers alone. Properties and land positions that can support “powered” use cases, such as battery storage facilities, industrial assets, workforce housing and distributed computing infrastructure, are identified as potential beneficiaries of AI-driven expansion. Together, these segments illustrate how energy capacity and digital connectivity are becoming intertwined with traditional real estate fundamentals in the AI era.
