The rapid expansion of artificial intelligence, digitalisation and cloud computing has fuelled unprecedented demand for data centres, making digital infrastructure one of the most sought-after sectors for institutional investors. The segment’s growth is expected to moderate as it matures, and few investors dispute its long-term relevance.
While the long-term need for data centres appears certain, the investment case is less straightforward. For this relatively young sector, questions around liquidity, technological change and returns remain unresolved, prompting investors to look beyond the hype before committing to capital.
History suggests transformative technologies, such as the railway boom of the 19th century to the fibre-optic buildout during the dot-com era, often attract significant waves of investment before markets fully understand which projects will ultimately create lasting value.
“As with other infrastructure booms and bubbles, there is a lot o
