Real Estate Day explores data center development

With artificial intelligence use increasing, Cal Poly’s second Real Estate Day focused on how data centers could affect communities across the Central Coast .

Hosted by Cal Poly’s Real Estate Initiative, the event featured panel discussions with business professionals, Cal Poly faculty and local government officials, who shared their perspectives and expertise on data center development and answered questions from attendees.

Data centers are large buildings that house computer systems that store information, run internet programs and train AI models. These facilities have the potential to generate local tax revenue, create construction jobs and attract private investments to surrounding areas.

Data centers also have environmental impacts, requiring substantial amounts of land, water for cooling and fossil fuels for producing energy, according to Lincoln Institute of Land Policy.

Hamed Ghoddusi, director of Cal Poly’s Real Estate Initiative, said the event aimed to bring the community together to discuss important issues and learn from one another.

“We don’t have many events where people get together to have informed discussions like this,” Ghoddusi said. “I think we really need more of this.”

Ghoddusi estimated that more than 200 people were in attendance at one point during the event.

Thomas Fowler, an architecture professor who spoke on one of the panels, said his students are designing data center concepts for a class project.

“I think it’s important for students to get information outside of the classroom in addition to being inside of the classroom,” Fowler said. “It’s rare that they would be working on a project that there would be a half-day seminar about the topic.”

Matthew Hanley, a business administration senior concentrating in real estate finance, said he attended the event to learn more about developments in commercial finance.

“They’re going to be built and what matters is that people know what’s going on,” Hanley said.

The panels also explored the potential economic benefits of data center development. Stockton Mayor Christina Fugazi, who participated in one of the panels, discussed data center development revenue’s potential to help fund local infrastructure improvements, including road repairs.

Business administration sophomore Andrew Silvas said the panels acknowledged the duality of data centers. He also expressed concern that cheaper technology could lead to increased usage and demand for more data centers, potentially creating what he described as a “scary world.”

Henry Knudson, a computer science senior and member of Cal Poly’s AI Ethics Lab, said he attended the event to hear perspectives beyond the concerns and skepticism about AI he often encounters in the lab.

“Being able to hear industry professionals talking about why we might need the speed that we do and what the benefits for communities might be was pretty interesting,” Knudson said.

Knudson said the AI Ethics Lab is also working on a project involving data centers, which motivated him to learn more about their potential impacts.

“I think this is comparable to the industrial revolution of the past,” Knudson said. “It’s really important that you get involved so that you don’t just experience the effects of it later if we don’t do it right.”