On the Spot with Steve Lore – May 2026

May 27, 2026

🎙️ Data Centers Enter a New Phase

The data center market continues to post exceptionally strong operating fundamentals, but beneath the surface, the industry is entering a far more complex phase of growth. In the latest episode of Capright’s On the Spot, Steve Williams sits down with data center expert Steve Lore to discuss how entitlement hurdles, power constraints, and community opposition are beginning to reshape development strategies across the United States.

As artificial intelligence adoption accelerates and hyperscale demand continues to expand, investors and developers are racing to secure sites and capacity. Yet according to Steve L., the market is no longer defined solely by demand growth. The next chapter of the data center boom may be determined by which markets can actually support development.

A Market Defined by Power and Policy

During the conversation, Steve Lore explains that some states are beginning to propose temporary bans or moratoriums on new data center development, extending entitlement timelines and creating uncertainty for developers.

At the same time, other states are aggressively positioning themselves to attract investment.

“States like Texas are opening up their arms to new data center projects,” Steve L. explained during the episode.

This divergence is creating a rapidly evolving map of opportunity for operators, institutional investors, and lenders trying to understand where future growth can realistically occur.

The Real Bottleneck: Infrastructure

One of the most important themes discussed in the episode is the growing challenge surrounding power delivery and infrastructure readiness.

According to Steve L., utility providers are now warning developers that energization timelines could stretch 18 to 24 months longer than originally anticipated. Combined with mounting community resistance, these delays are becoming a major obstacle for projects that once appeared straightforward.

For an industry built on speed-to-market and scalability, infrastructure constraints are becoming one of the defining risks investors must underwrite moving forward.

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For a full breakdown of the latest trends and insights, check out our Data Center Market Update:

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At Capright, we are uniquely positioned to support institutional investors, operators, and developers navigating this evolving environment. As an independent valuation and advisory firm, we provide clarity, accuracy, and confidence, especially where the stakes are highest.

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