Newmark Group and the Data Center Boom: A High-Conviction Play in AI-Driven Infrastructure
The global data center sector is experiencing a major shift fueled by the soaring demand for artificial intelligence (AI) and high-performance computing. At the center of this change is Newmark Group (NMRK), a commercial real estate services firm that has moved beyond traditional brokerage to become a key player in developing AI infrastructure. With a 21.8% year-over-year revenue increase in Q2 2025 and a 62.5% jump in investment sales volume, Newmark's results reflect the strong momentum in AI data center growth.
What distinguishes Newmark is its ability to combine capital, technology, and global expansion into a clear growth strategy. This makes it a noteworthy stock for investors looking toward the next decade of infrastructure development.
Strategic Financing of AI Infrastructure: A $15 Billion Commitment
One of Newmark's significant achievements is structuring a $7.1 billion construction loan for a 1.2-gigawatt AI data center in Abilene, Texas. This loan is part of a larger $15 billion joint venture involving Crusoe, Blue Owl Capital, and Primary Digital Infrastructure. The project will cover eight buildings and aims to deliver 1.4 gigawatts of power by 2026.
This deal highlights Newmark's skill in managing complex financing and connecting institutional capital with large-scale technology projects. It’s more than responding to demand; Newmark is actively building the infrastructure that supports AI advancements.
The broader context is critical: according to Newmark’s 2025 U.S. Data Center Market Outlook, AI-related data center construction spending has hit an all-time high of $31.5 billion annually. Yet, a significant challenge remains—power demand from these data centers is expected to exceed utility supply by 50%. Newmark’s collaboration with energy innovators like Crusoe, which utilizes natural gas and small modular reactors (SMRs), directly addresses this shortage. This integration of energy solutions into real estate development helps prevent bottlenecks that could slow growth.
Global Expansion: Strengthening Presence in Europe and Asia
Newmark’s global growth complements its U.S. efforts. Recent acquisitions such as BH2, Gerald Eve, and Harper Dennis Hobbs have expanded its footprint to over 20 offices across Europe. These moves diversify revenue and position Newmark to benefit from a recovering European data center market in 2025.
In Asia, Newmark operates in key markets including Singapore, Hong Kong, and India. Its services cover everything from site selection to securing government incentives, which is especially valuable in regions with complex regulatory and energy landscapes. For example, Newmark helps data center developers in India obtain tax credits and grants while supporting renewable energy initiatives. This focus has contributed to nearly $350 million in non-U.S. revenue in 2024, growing at a 60% compound annual rate since the company’s 2017 IPO.
Financial Strength and Institutional Support
Newmark's Q2 2025 earnings report showed a 40% increase in adjusted EPS, reaching $0.21. The Capital Markets division led with 32.7% revenue growth, reflecting the strong demand for financing in this sector. This performance has drawn increased attention from institutional investors; Goldman Sachs and Jane Street Group boosted their stakes in Q2, while multiple analysts upgraded the stock to “Buy” or “Strong-Buy.”
Long-term guidance points to adjusted EPS between $1.40 and $1.50 for 2025, with 15.17% earnings growth expected in fiscal 2026. Trading at a forward price-to-earnings ratio of 12x, Newmark appears undervalued relative to its growth prospects.
Managing Risks and Industry Challenges
Concerns about power shortages and regulatory hurdles in data center development are valid. However, Newmark’s partnerships with energy-focused developers and its use of sustainability-linked financing help mitigate these risks. For instance, projects powered by SMRs not only ease energy constraints but also fit within growing environmental, social, and governance (ESG) frameworks, enhancing asset value over time.
Investment Outlook
Newmark Group uniquely blends traditional real estate expertise with deep involvement in AI infrastructure development. Its strategic focus on AI data centers, global market diversification, and innovative financing models positions it well in a sector with an estimated 20% compound annual growth rate.
For professionals in real estate and construction interested in digital infrastructure, Newmark offers a clear example of where growth and resilience intersect. As data demand continues to climb, companies that build the necessary infrastructure stand to benefit substantially. Newmark’s leadership and agility make it a company to watch for those looking to invest in the foundational elements of tomorrow’s tech-driven economy.
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