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Why We're Buying AI Data Centers

Most investors are chasing AI stocks. We're focused on what AI actually runs on - data centers, power systems, fiber, and pipelines.

Private Infrastructure Alternatives
AG
Founder, STQ Capital
4 min read

Most investors are chasing AI stocks. We're focused on what AI actually runs on.

Every model, every query, every training run depends on physical infrastructure: data centers, power systems, fiber networks, cooling, and land. The assets behind the headlines.

The Demand Case

The demand is accelerating, and the numbers are hard to ignore.

37×
increase in US data center leasing since 2019
$769B
projected hyperscaler capex in 2026
200×
expected growth in global data creation by 2028

The constraint isn't demand. It's supply.

The Investment Thesis

This infrastructure is capital-intensive, slow to build, and hard to do without. That is exactly why it tends to offer long-duration, contracted cash flows with built-in inflation sensitivity, without needing to bet on which AI company wins.

Capital-intensive, defensively positioned, and largely indifferent to the market cycle.

The Institutional Gap

Institutions have been allocating here for years. The top infrastructure investors average ~12% exposure, and total private infrastructure AUM is projected to grow from $1.6T to $2.9T by 2030.

Most individual portfolios are still close to zero.

That gap is starting to close. For tax-sensitive investors seeking yield, diversification, and real asset exposure, private infrastructure is moving from niche to standard allocation.

The AI trade is getting crowded.

The layer beneath it is still early.

Sources: TD Cowen. Morgan Stanley Equity Research. Preqin. For informational purposes only. Not investment advice.

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