CBRE Group, the global commercial real-estate services firm, is expanding its footprint in the data-center sector through a $1 billion acquisition of Onnec Group, a London-based company specializing in equipping data centers. The deal includes a cash payment of approximately $610 million upfront, with an additional $400 million contingent on Onnec meeting growth targets over the coming years. Onnec, which employs around 800 people, installs and maintains cabling and equipment racks in data centers serving major technology firms across Europe and the Asia Pacific region.

This acquisition follows CBRE’s 2024 purchase of U.S.-based Direct Line, marking a strategic shift for the company from traditional real estate services such as construction, management, financing, and brokerage toward hands-on technology infrastructure inside data centers. CEO Bob Sulentic described the move as advancing into “where the actual compute happens,” signaling CBRE’s commitment to becoming deeply involved in the physical network and equipment that support AI applications.

The data-center market has seen significant growth, especially in the United States, where capacity in eight leading markets expanded by nearly 34% during the 12 months ending June 30. Despite rapid expansion, vacancy rates remain minimal at 1.4%. This sector offers an attractive growth avenue for commercial real estate firms amid rising interest rates that have dampened prospects in traditional areas like office, retail, and multifamily developments.

However, industry analysts acknowledge risks associated with aligning real-estate services closely with technology cycles, which historically provided diversification from tech-sector volatility. A potential slowdown in data-center construction or reduced corporate investment in equipment and networks could negatively impact revenue streams that are becoming increasingly critical.

Some investors express concerns that the current surge in AI-driven infrastructure investment might represent a bubble, with doubts about whether AI service revenue growth can sustain such heavy infrastructure spending. Sulentic acknowledged the market as “extremely frothy” but emphasized that CBRE's opportunities extend beyond new builds, including upgrading and managing existing facilities. The firm benefits from involvement at nearly every stage of data-center development, including land acquisition, construction oversight, equipment installation, operational management, financing, and brokerage.

Data centers and related infrastructure generated about $450 million in earnings for CBRE in 2025, representing 14% of the total, a substantial increase from 3% in 2021. The company projects infrastructure revenues, encompassing data centers, energy projects, and transportation, to reach approximately $7 billion by 2027.

CBRE is not alone in intensifying its focus on data centers. JLL, the industry’s second-largest commercial real estate firm, has been expanding its data-center capabilities as well, doubling the size of its U.S. data-center markets team in the past two years and adding expertise in energy and engineering. Andy Cvengros, co-lead of JLL’s U.S. data center markets team, noted rapid hiring to keep pace with growing demand.

Despite these opportunities, some investors worry that AI could disrupt traditional real estate revenue by reducing demand for office space as companies adopt more automated operations. AI-driven automation in research, valuation, and dealmaking could also reduce the need for broker services or lower fees. These concerns contributed to a decline in stock prices for CBRE, JLL, and other firms early this year. Still, industry experts like JPMorgan analyst Anthony Paolone assert that human expertise will remain essential in complex negotiations, financing, and due diligence, tempering fears about brokers being replaced by AI.