Data-Center Holdings Resilient as Private-Equity Returns Fell
Private-capital investments in data centers and associated businesses posted higher returns than private equity overall for a third consecutive quarter in Q1 2026 amid the AI theme’s continued prominence across private and public markets.
The new MSCI Private Capital Data Center Ecosystem Holdings Index returned 5.6% in the first quarter, compared to a drop of 0.7% for global private-equity holdings and a similar decline for global public equities. The drive toward the builders of AI is the same force that knocked legacy-software buyout holdings in Q1.
Over longer horizons, the Ecosystem Holdings Index also outpaced broader private-equity holdings, returning 22.7% and 18.7% annualized over the past one and three years, respectively.
The Ecosystem Holdings Index combines two sub-indexes. An index for operators tracks colocation facilities, operating companies and development land, and an index for the value chain captures the businesses enabling data-center operations (while excluding direct property exposure). The operator segment accounts for roughly two-thirds of holdings valuation in the Ecosystem Holdings Index, up from just over 40% in late 2022, as the investment theme has leaned to the physical infrastructure buildout for AI.
Together, the indexes aggregate performance across asset classes and entity types in private capital, ranging from physical facilities held in real-estate and infrastructure vehicles to the companies held in buyout and venture funds. They aim to give investors a consistent view of a rapidly growing opportunity set that has until now been split across mandates.
Gross-of-fees performance for the MSCI Private Capital Data Center Ecosystem Holdings Index, MSCI Private Capital Data Center Operator Holdings Index, MSCI Private Capital Data Center Value Chain Holdings Index and MSCI Global Private Equity Holdings Index. As of Q1 2026, the Ecosystem Holdings Index comprised 1,093 holdings, 522 of them active and in total worth USD 152.5 billion. Past performance — whether actual, backtested or simulated — is no indication or guarantee of future performance. Data as of Q1 2026.
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