10/30/2026
Economic Update - DATA CENTER INVESTMENT SURPASSES RESIDENTIAL
CONSTRUCTION
• US investment in intellectual property equipment, which includes data centers and AI infrastructure, surpassed residential real estate investment for the first time on record in Q2 2026, according to data from the Bureau of Economic Analysis analyzed by Morgan Lewis.
• IP equipment investment reached approximately $752 billion in Q2 2026 on an annualized basis, edging above residential investment of approximately $748 billion, as data center buildout accelerates across Northern Virginia, Texas, and the Midwest.
• The crossing of these two investment streams reflects a structural reallocation in the US economy, where residential investment is down roughly 18% from its 2021 peak, while IP equipment investment has surged approximately 51% over the same period.
• The reallocation is actively reshaping demand for Industrial land, power infrastructure, and data center-
adjacent logistics properties.