Wall Street Asset Managers Pitch Data Center Landlord Strategy as AI Infrastructure Bet

Wall Street alternative asset managers are positioning themselves as data center landlords, leasing physical AI infrastructure to major technology tenants under long-term contracts rather than betting on which AI model prevails. Blue Owl, Ares Management, KKR, Blackstone and Apollo all rose during Thursday trading, with Blue Owl gaining 6.5% and Apollo up 3.7%. Blue Owl co-CEO Marc Lipschultz said the firm owns physical infrastructure essential to digital growth, typically leased on 15- to 20-year terms with annual rent escalators, generating predictable, growing income. Blue Owl operates or is developing more than 130 data centers, with nearly 14 gigawatts leased or owned and 21 gigawatts of potential projects. CFO Alan Kirshenbaum said the firm is underwriting the credit of tenants such as Microsoft, Amazon and Meta rather than AI outcomes. Ares targets Tokyo, Osaka, London and Sao Paulo, pre-leasing to investment-grade hyperscalers on 12- to 15-year terms without early termination rights. Ares estimates AI-related capital expenditure demand will slightly exceed $5 trillion by 2030. Moody's warned that concentration, construction, residual value and revolving credit risks are rising.