Blue Owl, Ares Management, KKR invest in AI data centers
Big names like Blue Owl, Ares Management, KKR, and Blackstone are investing in AI-focused data centers.
Their strategy? Lock in steady profits by signing long-term leases with reliable tech giants.
It's already paying off: shares of these firms just jumped, with Blue Owl up 6.5%, Ares up 2%, and KKR and Blackstone each rising 2.5%.
Long investment-grade leases provide steady income
These asset managers are teaming up with investment-grade companies like Microsoft and Amazon on leases that last 15 to 20 years for Blue Owl and Blackstone, and 12 to 15 years for Ares Management, with Blue Owl's having annual rent increases and Ares Management's having inflation-linked rent increases.
As demand for AI infrastructure is set to top $5 trillion by 2030, these deals offer steady income even when the economy gets shaky, showing how finance is adapting to the AI boom.