Key facts
- Alternative asset managers are investing in AI infrastructure, focusing on data centers.
- Companies are securing long-term leases with high-quality tenants for AI infrastructure.
- Blue Owl owns over 130 data centers with nearly 14 GW of capacity.
- Ares Management targets major metropolitan areas for data center development.
- Blackstone's data center counterparties are 96% investment grade.
- AI-related capex demand is estimated at over $5 trillion through 2030.
Wall Street's leading alternative asset managers are capitalizing on the artificial intelligence boom by investing in the underlying infrastructure, primarily data centers, and securing long-term leases with high-quality tenants. This strategy aims to create predictable and growing rental income streams for investors, mitigating risks associated with short-term leases and market volatility. Companies like Blue Owl, Ares Management, and Blackstone are emphasizing their focus on physical assets and robust counterparty risk management.