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Data Centres
Better way to play AI?

  • What are data centres?
  • What are the types of data centre investment strategies?
  • Why invest in data centres and what are the key considerations?
  • What does it mean for you?

A lot of recent commentary within investment markets has
revolved around how to ‘best play the AI theme’. Within listed
equities, such unbridled enthusiasm for AI has led to a level of
market concentration not seen since the 1970s, as a group of
AI exposed stocks dubbed the ‘magnificent seven’ dominated
market returns in 2023.

Since the beginning of 2023, AI-connected stocks have delivered 30% better returns than both U.S and global indexes, but we view the path forward as less clear given the difficulties in finding long-term winners within momentum driven listed equity markets.

Further to this, the early August market volatility has emphasised
the unpredictability of listed equity markets and reinforces our view that a more balanced and nuanced approach will work better from here. As such, our focus has shifted to the infrastructure that underpins AI and identifying attractive investment opportunities within less liquid markets, which are fundamentally required for the development and support of the AI ecosystem. One such asset class we have identified as well placed to take advantage of the growing demands of AI, is data centres.

Get in touch

Image Rob Agnew

Partner & Head of Private Capital

Rob.Agnew@isio.com See full profile
Image Ajith Balan Nair

Head of Asset Class and Manager Research

ajith.nair@isio.com See full profile

Get in touch

Talk to us today to see how our bolder thinking can get you better results.