In a video analysis, I discuss how capital is moving through the data center space. A few highlights below:
Data center new builds are expensive.
New builds are costing more, and higher interest rates make new financing pricier. That raises the value of existing capacity and creates room for early, higher-priced capital to recycle into new deals.
Prior work supports thesis.
In summer 2025 interviews for a January 2026 article below, Bill Stein expected early higher-priced capital to recycle and hyperscalers to eventually shed real estate holdings. Stein was also part of the financing consortium, including Blue Owl, behind the first Stargate in Abilene.
I discuss the Blackstone Digital Infrastructure Trust, a REIT, which captures part of the AI trade. The investment ties together hyperscalers, chips, real estate, and energy. It also connects to the MANGOS framework discussed in June.
Reference articles:
AI Buildout: What You Need to Know
Several storylines about the AI infrastructure buildout intersect, overlap and are conflated based on the stakeholder group. This reporting highlights specific aspects related to investors and riskta…
(Video) The Most Valuable Firms: MANGOS
In a video, a 30,000-foot overview of the AI technology investment landscape is offered, introducing the concept of “MANGOS,” a modern successor to the FANG acronym. FANG captured Facebook, Apple, Ne…
Portfolio: Inside the AI Power Race: Why DFW Could be the Backbone of the Next Industrial Revolution
The feature in the January-February 2026 edition of DCEO Magazine is a sequel to the March 2025 feature “The Really Wild AI Ride.” That feature represented about two and a half years of work focusing on what was happening with generative AI, semiconductors (chips), the emergence of more data centers and increased capex spending by big tech.