CLI Newsletter March.2025
TOP NEWS
U.S. Manufacturing Expands Despite Challenges
Matrix Industrial Report-February 2025
Article Source: Yardi Matrix
Construction spending on manufacturing has increased threefold since 2021, but the country is still far off from a full-scale resurgence. Read about this trend and get the latest data in this month's Yardi Matrix Industrial Monthly.
Key Takeaways
➡Manufacturing Grows Despite Headwinds
➡Rents and Occupancy: Port Market Rents Grow Despite Vacancies
➡Supply: Charlotte’s Manufacturing Boom
➡Transactions: Dallas led the nation with nearly $6 billion in industrial sales last year
INVESTMENT INSIGHT
KW Vision 2025
U.S. Real Estate Market Overview
Home Sales & Prices: Home sales show seasonal trends, while prices rise steadily, but affordability remains a challenge
U.S. Economic Outlook
Economic Trends: GDP growth stabilizes, unemployment remains low, but inflation and policy risks loom.
Industry Trends
Agent Productivity: Agent productivity declines, while new home construction grows despite affordability challenges.
Luxury Market
Wealth & Investment: High-net-worth individuals drive luxury real estate, with 19% of portfolios allocated to property.
Commercial Real Estate
Sector Shifts: Office vacancies hit record highs, while industrial and multifamily sectors face mixed trends.
Technology and Industry News
Tech Advancements: AI and virtual tools are transforming real estate operations and property marketing.
COMING UP
Announcing The Stargate Project
Stargate's first data center is underway in Texas. Public filings show how much it will cost to build.
Article Source: businessinsider.com
Stargate Project is a new company planning to invest $500 billion over the next four years to build AI infrastructure for OpenAI in the United States, with $100 billion deployed immediately. The project aims to secure U.S. leadership in AI, create hundreds of thousands of jobs, and provide economic and national security benefits.
Key investors include SoftBank, OpenAI, Oracle, and MGX, with SoftBank handling finances and OpenAI managing operations. Masayoshi Son will serve as chairman. Technology partners include Arm, Microsoft, NVIDIA, Oracle, and OpenAI. Construction has begun in Texas, with more sites under evaluation.
Oracle, NVIDIA, and OpenAI will collaborate to build and operate computing systems, and OpenAI will continue using Microsoft Azure for model training and AI services. The project aims to develop 5-10 data center campuses, each with over 1GW capacity. The first Stargate data center in Abilene, Texas is being developed by Crusoe and Oracle on Lancium-owned land.
By the end of 2026, OpenAI and Oracle plan to deploy 64,000 NVIDIA GB200 chips in Abilene, with 16,000 installed by this summer. NVIDIA Spectrum-X ethernet networking will be used in the Stargate centers. OpenAI is also exploring data center locations in 16 states, including California, New York, Florida, Texas, and Ohio.
Abilene, Texas: A Strategic Data Center Location
Abilene, Texas, is a city of 125,182 people (2020 census) and the principal city of the Abilene metropolitan area (176,579 population). It is home to Abilene Christian University, McMurry University, and Hardin–Simmons University and hosts Dyess Air Force Base.
Abilene, Texas, is a city of 125,182 people (2020 census) and the principal city of the Abilene metropolitan area (176,579 population). It is home to Abilene Christian University, McMurry University, and Hardin–Simmons University and hosts Dyess Air Force Base.
1. Strategic Location & Connectivity
Centrally located in Texas, providing easy access to major cities like Dallas, Austin, and San Antonio.
Well-connected by Interstate 20 (I-20) and U.S. Highways 83 & 84, with access to rail networks, ensuring efficient transportation and logistics.
2. Infrastructure & Energy Advantages
Abundant wind and solar energy lowers operational costs and supports sustainability.
Low-cost, expansive land allows for large-scale data center construction and future expansion.
3. Economic & Workforce Benefits
Diversifies Abilene’s economy beyond military and education.
Access to talent from local universities and Texas' broader IT workforce.
4. Quality of Life & Business Appeal
Lower cost of living compared to major tech hubs, making it attractive for employees.
Moderate climate reduces cooling energy costs for data centers.
Strong community and government support provide incentives for investment.
5. Key Site Selection Factors
Sustainable energy resources and low-cost land reduce long-term expenses.
Stable power grid, reliable infrastructure, and favorable business conditions support large-scale data operations.
