Artificial intelligence (AI)-driven data center investment is scaling rapidly, but how that growth translates into durable revenue remains uncertain. Dan Dreher, solutions strategist at L&G – Asset Management, America, in an interview with IREI, examines how demand, capital and risk may evolve as the sector moves through a full cycle. He also outlines where pressures could emerge across financing structures and what will ultimately determine whether today’s expansion proves sustainable.
What are the biggest unknowns that will only become clear over a full cycle?
The key unknown is not whether AI demand exists, but how persistent, evenly distributed and monetizable that demand proves across cycles, particularly once today’s unprecedented capital stock is fully built.
The system has not yet experienced a scenario in which AI capability continues to accelerate while economic adoption lags, leaving capacity in place ahead of durable revenu
