According to an analysis published by Pimco and Pimco Prime Real Estate in summer 2026, the expansion of artificial intelligence — notably the rising demand for data centers — is materially changing the logic of real estate investing. The report estimates that building AI infrastructure will require about $5.2 trillion (5,200 billion USD) of capital through 2030.
Three key findings
Pimco highlights three main conclusions in the summer 2026 report:
- Flexibility becomes critical across asset use, tenant mix, business plans, holding periods, capital structures and geographic exposure.
- Returns will be anchored by stable, durable income; resilience to downside risk has become more highly valued in real estate.
- In overlapping sectors, performance will increasingly be determined by location choice, the quality of development and property management.
Pimco also notes that professionally managed, uniquely located or strategically important properties may outperform as AI intensifies polarization within traditional sectors.
Blurring lines between infrastructure and real estate
The report points out that the clearest example of the blurring boundary is data centers. These can be valued as real estate (land, permits, development and leasing), yet their operational success depends heavily on infrastructure-type factors such as power supply, cooling, operational reliability and network access.
A similar convergence is observable in social and community infrastructure: healthcare facilities, student housing, affordable housing projects and elder care homes — and public buildings such as police stations and courthouses — may appear as real estate but functionally serve as infrastructure.
Europe: defense spending and real estate demand
The study pays special attention to the defense sector, primarily in Europe. It notes that at the 2025 NATO summit in The Hague, European member states committed to spend 5 percent of GDP annually on defense and security by 2035. About 1.5 percent of that spending could be directed toward developing defense infrastructure, including logistics units, training and recruitment centers, military accommodations, data centers, manufacturing facilities and R&D.
Pimco argues that the real estate sector can offer faster delivery and simpler execution relative to traditional infrastructure projects, although these opportunities require specialized expertise.
Technology's impact on labor
The analysis references a March study by Goldman Sachs which estimates AI could automate roughly 25 percent of current workflows in the United States. The Goldman Sachs study also cautions that widespread adoption of the technology may take up to a decade.
Pimco's scale and investment implications
Pimco manages one of the world’s largest commercial real estate platforms: as of December 2025, that platform represented roughly $169 billion of assets. Pimco’s report stresses that capital flowing into AI infrastructure may draw resources away from other asset classes and push investor demand toward sectors that provide stable income and resilience.
The study therefore recommends investors weigh flexibility, tenant creditworthiness, lease structure and rental sustainability when making investment decisions.
Forums and discussion
Pimco’s findings are expected to feature in industry discussions such as the Portfolio Property Investment Forum, where market participants will debate the implications of AI infrastructure and evolving defense-related real estate demand across Europe.
Cover image: illustration (Getty Images).
