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BCLP Partner Eddie Lowry was quoted recently in Chicago Lawyer magazine on the ongoing demand for data center development in the U.S. and, in particular, the Midwest. “The Midwest is clearly very ripe for the development of data centers because there is an abundance of water,” Eddie said. “The water isn’t like what is used for other manufacturing applications, it can be filtered and reused. But there has to be a lot of it.” Eddie discussed how states like Illinois – with Chicago being one of the three major U.S. data center hubs – are offering tax incentives for data center development, albeit to a lesser extent than retail or manufacturing development projects, mostly due to a lower level of job creation, explaining that, “Data centers are not like a warehouse facility where you have people handling physical products.” Eddie also commented on the importance of proximity to population centers so companies utilizing data center space can keep customers satisfied with their online capabilities. “You want those processing centers close because people expect it. They want their internet fast,” he said. “They want their applications to work quickly and don’t want it to go down. Redundancies play into that, but proximity to processing is important.”

For investors, ongoing demand for increased capacity and new sites has made data centers an attractive investment option. “Investment continues to be very attractive for a lot of our clients,” Eddie said, going on to explain that expected growth of metaverse applications is also anticipated to play a significant part in the expansion of the market. “More need for data centers and infrastructure – energy and physical infrastructure – we see no end in sight,” he said, adding, “These are deals that are growing in size and in frequency. There’s a lot on the horizon. There’s a lot of funds dealing in the billions of dollars ready to invest in data centers.”

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