Sector in Focus: Data centers

The data center build-out, led by the big four hyperscalers, will require billions of dollars of private capital. Here we examine the return proposition for investors and the emerging risks from potential oversupply and obsolescence

• Funds with digital infrastructure exposure raised over $100bn last year, twice the amount raised in 2024, representing around half of the fundraising for the whole infrastructure asset class

• Data center transactions using private capital are breaking the $10bn mark, with the largest in 2025 reaching $40bn and almost 70% taking place in North America

• Operational risk around contracts and power and water supply make manager selection key for LPs

• Given data centers’ size, concerns are growing over their social license to access power and water