Diana Olick, a prominent real estate correspondent, recently appeared on CNBC’s Closing Bell Overtime to explore an unconventional trend in property investment. Throughout the segment, she drew attention to an interesting pattern. Real estate investors are turning their sights to outer space, believing the cosmos to be the next land rush.
The discussion focused on the increasing political and commercial interest in creating data centers and other infrastructure in outer space. As technology evolves, so does the need for more data storage and processing power. Investors are hunting for more thrilling opportunities outside of our planet’s atmosphere. They are convinced that the unparalleled space conditions would provide truly transformative data processing and analysis capabilities.
Olick noted that this proposal may seem unrealistic. The good news is that many of these companies are already well on their way down this path. They have plans to deploy satellites and ultimately construct facilities that would house satellites in orbit. This move is indicative of a larger trend where even traditional real estate investors are looking for new frontiers to grow.
According to experts, the envirobiological benefits alone are enough to justify outer space investments. For example, the elimination of latency challenges related to terrestrial data centers is a huge benefit. Further, the enormous scale of space means operations can be much larger without the limiting factor of available land on Earth.
Challenges remain. Regulatory hurdles, technological limitations, and sky-high initial costs may present a challenge to building profitable businesses in this new frontier. Olick noted that quite often the rewards can be greater than the risk and challenge. As the investors turn to outer space as a budding property market, the possibilities expand.