Real Assets

Harnessing the Power Behind the Power of AI: Opportunities Across Public Real Assets

White Paper

Apr 25, 2024

The boom in artificial intelligence (AI) and other quantum computing applications is driving explosive growth in data demand. While many investors are focusing on the potential for technology companies to benefit from this megatrend, we believe there are less-appreciated attractive opportunities in the public real asset companies powering the power of AI.

Data, the world’s fastest-growing commodity, requires critical real assets in order to be transported, processed, stored, and powered. The insatiable appetite for data is leading to a subsequent rapid increase in power demand, and electrical grids are already having trouble keeping pace. In our view, significant investment will be required to upgrade the infrastructure and real estate needed to handle the growing data and power demands resulting from the AI megatrend.

We believe real asset companies that operate the backbone of the digital economy offer an attractive way to capitalize on the AI megatrend with potentially lower substitution and technology risks than traditional technology companies such as semiconductor firms. We see AI powering opportunities across four key areas of the broader public real asset universe and believe these exposures can provide diversification benefits to technology-heavy portfolios.

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