Data Centers’ New Reality: Performance, Risk and Capital Perspective

Institutional capital has poured into data centers at a pace few sectors have seen, driven by strong returns and growing AI demand. Construction starts rose nearly sixfold between early 2020 and 2025.¹ But that rapid growth has made capital more selective and the bar for what gets funded, and on what terms, is rising.

Against this backdrop, the questions are sharpening. Is supply outpacing demand in key markets? As AI increases power density and capital intensity, which assets will hold their value? And how are investors assessing climate and energy risks at the site level? And what does that mean for which assets get financed? 

Join us on July 2 in Singapore, where we bring together operators, developers and investors to explore how institutional capital is responding to these and the potential implications on site selection, asset design and capital structure.

What you will take away

• Understand how investors and lenders are repricing risk across the sector and potential implications deal terms, loan covenants and cost of capital

• Gain insight into transaction volumes, cap rate trends and construction pipeline across the region

• Understand how the AI-driven infrastructure shift is influencing which assets attract long-term institutional backing and which face valuation pressure

• Learn how climate and energy risk are being assessed at the site level 

   

  ¹ https://www.msci.com/research-and-insights/blog-post/the-rise-and-concentration-risk-of-data-centers-in-private-markets