AI Is Reshaping Data Center Valuations—Are Investors Keeping Up?
As AI-driven demand surges, traditional valuation models are being put to the test. Here’s what investors need to know about evolving risks, financing trends, and the future of data center deals.
AI’s demand for data centers is skyrocketing...
But are today’s valuation models keeping up?
That was one of the key discussions during our panel last week at the inaugural Data Center Private Equity Dealmakers Conference hosted by Information Management Network (IMN).
Alongside Vicki Worden, Karlton Holston, Aaron Kutner, Scott Jacobs and Kevin Sanders, we broke down:
- How DeepSeek AI’s rise could reshape AI-driven data center demand — and what it means for future valuations.
- How tariffs, rising development costs, and regional risks are impacting deal flow.
- The stock market and interest rate impact on cap rates, lease structures, and financing decisions.
- The due diligence factors that separate a good data center investment from a great one — including power availability, expansion potential, and lease implications.
- The unique risks and opportunities in emerging markets for data center investments.
The key takeaway?
AI is accelerating demand, but investors need to rethink risk and scalability.
The market is evolving fast, and the smartest deals are looking beyond today’s metrics.
What’s your take on AI’s impact on data center valuations?
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