The capital intensity of artificial intelligence is without modern precedent. The build-out of compute, power generation and data-centre capacity now demands financing on a scale that exceeds the balance sheets of even the largest technology platforms. What was once a venture story has become an infrastructure story — and the allocators best positioned to participate are those accustomed to underwriting long-dated, asset-heavy programmes: sovereign funds, pension institutions and infrastructure specialists.
Yet the financing structures emerging around the AI build-out are far from settled. Hybrid instruments — part project finance, part corporate credit, part equity-linked — are being assembled deal by deal, often with bespoke covenants tied to offtake agreements and energy supply. Power availability, not silicon, has become the binding constraint, and capital that can underwrite the energy dimension of the build-out commands disproportionate negotiating strength.
For disciplined investors, the question is no longer whether to gain exposure but where in the stack to take it. Senior positions in energised, contracted capacity offer infrastructure-like profiles; earlier participation in land, power and permitting carries development risk priced accordingly. Our counsel to clients is consistent: exposure should be structured around contracted cash flows and credible counterparties — and entered through relationships, not auctions.
SENS Capital Partners — Dubai, UAE