In a recent episode of the Infralogic Crossroads Infrastructure Podcast, Pete Scherer and Dima Orendarets explored current trends in data center investments. The discussion highlighted the differences between traditional real estate investor approaches and infrastructure investor strategies.
Scherer and Orendarets examined factors contributing to the convergence of real estate and infrastructure investment. These include elevated interest rates, a challenging fundraising environment, increased demand for data centers driven by artificial intelligence, and private equity firms seeking new opportunities.
The podcast noted that blended teams from infrastructure and real estate sectors are finding synergy. Infrastructure professionals bring experience in underwriting operational risks, while real estate teams manage title, connectivity, and property risks effectively.
Beyond data centers, other asset classes experiencing convergence in real estate and infrastructure investing were discussed. These include electric vehicle charging stations, battery storage, telecommunication towers, and senior housing facilities.
The Crossroads podcast referenced a Ropes & Gray Viewpoints column authored by Pete Scherer along with partner Jack Creedon and private equity partner Brandon Howald titled “What’s in a Name? A Lot When it Comes to Data Center Investing.”
