Oct 31, 2024 - Business

Private equity giants commit $50 billion to AI infrastructure

Dan Primack

Illustration of a glowing lightning bolt symbol filled with binary code. — Illustration: Annelise Capossela/Axios.

Private equity firms KKR and Energy Capital Partners announced a $50 billion strategic partnership that will invest in data centers and energy infrastructure for AI expansion.

Why it matters: This is the real AI gold rush, building the agent-agnostic architecture that will support any "above-ground" winners.

By the numbers: Goldman Sachs estimates that data center electricity demand will rise by 160% by 2030, while McKinsey thinks it could climb by 300%.

Details: KKR says it will support the initiative via current infrastructure and real estate funds, plus managed insurance accounts. ECP says it will utilize both current and future infrastructure funds.

It's a bit of a reversal within the alternative asset world, with private equity investing to indirectly support startup growth.

The bottom line: "Barbarians are at the grid." — Michael Flaherty, Axios Pro

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Private equity giants commit $50 billion to AI infrastructure

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