Goldman Sachs Forecasts Increased Role for Private Infrastructure in AI-Driven Data-Center Boom
Private infrastructure and real estate capital are expected to play a larger role in financing the AI-driven data-center boom, as companies move beyond traditional forms of funding, according to a note from Goldman Sachs.
Increased Capex Forecast for Hyperscalers
- Goldman Sachs increased its combined capex forecast for the four largest hyperscalers (Meta, Microsoft, Amazon, and Alphabet) to $5.3 trillion between fiscal years 2025 and 2030.
- Initially, the brokerage forecast capex at $4.5 trillion for the same period.
Private Infrastructure and Real Estate to Play a Larger Role
"Private infrastructure and real estate will play an even larger role in the years ahead," Goldman Sachs said.
The boundaries between private infrastructure and real estate are blurring as data center projects extend into different categories such as land, power, building, and equipment.
Benefits of Private Infrastructure
- Private infrastructure's structured income generation and inflation-protection characteristics will likely boost further growth.
- Infrastructure sits at the epicenter of multiple structural tailwinds, which we expect will drive its growth and provide additional capacity for financing.
Market Growth and Infrastructure Assets Under Management (AUM)
- From 2021 to 2024, the private infrastructure market grew at an annualized rate of roughly 11.5%.
- Goldman Sachs expects this growth rate to increase, potentially closer to the 16% to 17% annualized growth that prevailed for much of 2012 to 2021.
- This growth rate would push the infrastructure assets under management (AUM) comfortably above $3 trillion by 2030.
Source: Goldman Sachs