New Data-Center Property Investment Signals AI Boom
1 year, 2 months ago

New Data-Center Property Investment Signals AI Boom

Live Mint  

One of the world’s largest data-center developers is getting a $6.4 billion equity infusion, the latest sign that this property sector is booming alongside the rise in artificial intelligence. Vantage Data Centers plans to use the capital from digital infrastructure investor DigitalBridge Group and Silver Lake, a technology investment firm, to add more than 3 gigawatts of capacity globally. This high demand fueled data-center rent increases last year in the low double digits, up from the high single digits in 2022, said David Guarino, an analyst with real estate analytics firm Green Street. Silver Lake, based in Menlo Park, Calif., and New York, founded Vantage in 2010 with an eye toward meeting the growing data-center demand from cloud-computing businesses being built by technology companies. Lee Wittlinger, a Silver Lake managing director, said his firm decided to renew its investment in Vantage after recognizing the importance of AI to all of Silver Lake’s portfolio companies.

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