Enabling Growth in Compute Infrastructure through Investment Strategy and Capital Structure Advisory

The traditional approach to investing in and financing data centres is evolving. The significant rise in capital expenditure requires a complex, cross-functional capital structure tailored to meet varying use cases and investment risks.

The digital infrastructure landscape across the globe is undergoing a seismic shift, driven by the demand for artificial intelligence (AI) and high performance computing. This change requires a recalibration of the investment scale required to build the infrastructure that is necessary for this digital future.

The Scale of Investment Required

Cumulative global capital expenditure is projected to reach approximately USD6.7 trillion by 2030. Of this total, USD5.2 trillion is specifically earmarked for AI-related data centres, and USD1.5 trillion to be used for traditional computing. The annual rate of spending is equally intense with annual capital expenditure being forecasted to reach between USD1 trillion and USD1.6 trillion.

Segmentation of Digital Infrastructure

The market has effectively segmented into three distinct operating models, each with a unique risk profile that dictates its financing strategy:

• Colocation and Retail
• Hyperscale and Traditional Cloud
• Hyperscale AI and GPU as a Service (GPUaaS)

Regional Risk and Infrastructure Interdependence

The mature markets of the US and Europe have sophisticated debt and equity structures that seek access to large population centres and sit within hyperscaler cloud availability zones. The developing markets in the Middle East and Asia are experiencing high growth because land and energy are often cheaper and less scarce and subsidies are often available.

The Enabling growth in compute infrastructure through investment strategy and capital structure advisory report outlines how investors can structure capital and investment strategies to navigate evolving market demand, emerging technologies, and local regulatory considerations, with the objective of achieving sustainable, long-term returns. Download the report to explore more.