Private Markets Shift Focus to AI Data Center Operations Costs

JPMorgan Chase & Co.'s head of alternative investments, Kristin Kallergis Rowland, believes that private markets are on the cusp of a significant shift in financing artificial intelligence infrastructure. According to her, this shift will see a substantial increase in investment in data centers and their operations.

Speaking on Bloomberg Deals TV show, Rowland pointed out that while much attention has been focused on the debt given to build data centers, the actual operating costs of these facilities are significantly higher. 'For every dollar it costs to build,' she said, 'it costs another three or four dollars to actually operate.'

This insight suggests that investors may be overlooking a crucial aspect of AI infrastructure financing, namely the high operational costs associated with data centers.

The September 30th interview provided no further details on potential investment targets or specific figures. However, Rowland's comments underscore the evolving nature of private market investments in AI infrastructure.