The Infrastructure Investor Podcast A deep dive into the AI infrastructure opportunity
4 snips
Sep 23, 2024 In this insightful conversation, Marc Ganzi, the CEO of DigitalBridge and expert in digital infrastructure, shares his insights on the booming AI infrastructure market. He emphasizes the multi-trillion dollar potential of this sector, highlighting the importance of patience in investment. Ganzi discusses the critical need for power resources, the growing significance of private cloud solutions, and innovative approaches like microgrids. He also addresses environmental concerns and the future of capital allocation, reinforcing the balance between hype and realistic expectations.
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Episode notes
AI Infrastructure Is A Multi-Generational Build
- AI infrastructure follows the same multi-year build trajectory as public cloud and will take patience.
- Marc Ganzi estimates AI infrastructure is a roughly $4–5 trillion multi-decade opportunity, including power and supporting assets.
Target Private Cloud And Edge Niches
- Do consider private cloud, edge, near-edge and sovereign data hubs as distinct investment lanes.
- Prioritise tier‑four/tier‑five private cloud for sensitive training workloads and data sovereignty demands.
Underwrite Digital Like Classic Infrastructure
- Underwrite digital infrastructure like traditional infrastructure using four criteria: long contracted cash flows, entitlements, real estate control and investment‑grade counterparties.
- Avoid assets that lack long leases, land control or high‑quality tenants to reduce stranded‑asset risk.