Unlocking the $70 Billion: How State Unclaimed Property Funds Can Fuel the Infrastructure and Data Center Revolution

The United States is sitting on a $70 billion treasure trove—state unclaimed property funds that remain largely untouched despite their vast potential. These funds, held by treasurers across all 50 states, represent forgotten bank accounts, uncashed checks, unclaimed insurance proceeds, and even matured savings bonds. Yet, as of 2025, the majority of these assets are parked in low-risk, low-yield investments or held in reserve for potential claimants. This underutilization presents a unique opportunity: a strategic reallocation of these funds to address the nation's most pressing infrastructure and digital infrastructure needs.

The Current State of Unclaimed Property Funds

State unclaimed property programs are designed to reunite individuals with their lost assets. In fiscal year 2025 alone, over $2.8 billion was returned to rightful owners, with an average claim of $1,609.95. However, the $70 billion still held in state coffers is largely underleveraged. Most states invest these funds conservatively, prioritizing liquidity and safety over growth. For example, New York's $17 billion in unclaimed property is primarily allocated to short-term U.S. Treasuries and state bonds, yielding minimal returns. This cautious approach, while prudent for preserving principal, misses the chance to generate value through high-impact investments.

A Growing Demand for Infrastructure and Data Centers

The demand for modern infrastructure and data centers is accelerating. The rise of artificial intelligence, generative AI, and the metaverse has created an insatiable appetite for high-capacity, low-latency data centers. According to industry forecasts, global data center investment is projected to exceed $1.2 trillion by 2030. Simultaneously, the U.S. infrastructure deficit—estimated at $2.6 trillion—highlights the urgent need for upgrades to roads, bridges, and energy grids.

Strategic Reallocation: A Win-Win for States and Investors

Reallocating unclaimed property funds to infrastructure and data center development could create a virtuous cycle. States could generate higher returns by investing in projects that align with national priorities, while investors would gain access to high-growth sectors. For example:
1. Public-Private Partnerships (PPPs): States could use unclaimed property funds as seed capital for PPPs, leveraging private sector expertise and capital to build data centers or expand broadband access.
2. Greenfield Projects: With $70 billion in capital, states could fund greenfield data centers in underserved regions, addressing both supply chain bottlenecks and rural digital divides.
3. Infrastructure Bonds: Unclaimed funds could be used to issue infrastructure bonds, attracting institutional investors while prioritizing projects like EV charging networks or smart grid upgrades.

Legal and Regulatory Considerations

The reallocation of unclaimed property funds is not without challenges. States must navigate complex legal frameworks, including:
- Shortened Abandonment Periods: Many states are reducing the time before an asset is considered abandoned (e.g., from 5 to 3 years), increasing the volume of funds available for reallocation.
- Cryptocurrency Reporting: As states formalize rules for unclaimed cryptocurrency, they may gain access to digital assets that could be liquidated and reinvested.
- Retirement Asset Voluntary Escheatment: The Department of Labor's temporary guidance on voluntarily escheating small retirement benefits could expand the pool of funds available for infrastructure.

Investment Implications for 2025 and Beyond

For investors, the reallocation of unclaimed property funds could unlock new opportunities:
1. Infrastructure Equity Funds: Consider exposure to funds like Global Infrastructure Partners (GIP) or Macquarie's infrastructure arm, which are positioned to benefit from state-led projects.
2. Data Center REITs: Digital Realty (DLR), CoreSite (COR), and Equinix (EQIX) are well-positioned to capitalize on the AI-driven demand for data centers.
3. Green Bonds: States issuing infrastructure bonds backed by unclaimed property funds could offer attractive yields and ESG alignment.

Conclusion: A Call for Strategic Vision

The $70 billion in unclaimed property funds represents a sleeping giant. By redirecting these assets toward infrastructure and data center development, states can address critical national needs while generating sustainable returns. For investors, this shift presents a rare convergence of public policy and market opportunity. As the U.S. faces mounting challenges in digital transformation and infrastructure modernization, the time to act is now—before these funds remain underutilized for another decade.