Wall Street Proposes ‘Off Ramp’ for Data Center Investors

The investment bankers in the middle of the trillion-dollar data center boom are working on their next play: capital recycling.

Private equity firms and real estate funds that invest in new artificial intelligence data centers will eventually need cash returns from their investments. Some of the data center operators they own are getting too big to sell, and may have too much debt to get the best price in an initial public offering. 

Goldman Sachs has floated one alternative: that they sell off their stakes to other investors once long-term tenants are locked in and buildings are “stabilized.”