The market has been attracting extraordinary investment; new research shows the momentum is durable.
Partner Eamon Nolan examined the outlook for data center infrastructure investment in a new survey of 200 senior infrastructure developers and private capital investors. He highlighted continued confidence in AI-driven data center growth, with nearly 90 percent of investors believing the current pace of capital expenditures is sustainable over the next one to five years. However, he noted that power availability remains a significant constraint, with investors increasingly prioritizing secured power procurement when evaluating projects.
Nolan also explored how power constraints are reshaping development strategies, including a shift toward emerging markets with available power capacity and favorable permitting environments, as well as increased adoption of microgrids and on-site generation. He discussed the factors supporting investor confidence in non-hyperscaler projects, including long-term contracted offtake agreements, sponsor or private equity backing and secured power procurement. He concluded that the data center infrastructure market has substantial room for growth, with investors best positioned to capture value by addressing power challenges and strategically deploying capital.
This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.