Sector in Focus: Data centers

Data center investment is spread across infrastructure and real estate funds in private markets. A small group of first movers and high greenfield costs create barriers for new entrants

• Data center demand amid the expansion of AI activity has created a rise in private market deal opportunities for infrastructure and real estate managers 

• Globally, North America leads by data center deal volume and value with tax and regulation in focus for investors

• Established first movers and high capex make hyperscale projects a competitive space, but these projects can act as an entry point for established GPs who can raise mega funds