The Hidden Infrastructure Boom Behind AI: Why Power and Data Centers Matter More Than You Think

The $5.2 Trillion Question: What Does AI Really Need?

The AI revolution has captured investor attention, but most eyes remain fixed on one thing: semiconductor makers. Companies like Nvidia and Micron have seen their valuations explode as demand for GPUs and memory chips reaches unprecedented levels. However, a far deeper trend is unfolding beneath the surface—one that’s equally critical to the AI gold rush but significantly less discussed.

According to McKinsey estimates, the global economy will need to invest approximately $5.2 trillion in AI infrastructure through 2030. Hardware manufacturers get the headlines, but here’s the reality: chips are only part of the equation. The real bottleneck lies in the physical infrastructure—the buildings, power systems, and electricity supply chains that actually make AI computation possible.

The Three Pillars of AI Infrastructure

Data Centers: The Physical Foundation

AI doesn’t exist in the cloud as some abstract concept. It requires massive, purpose-built facilities called AI factories—data centers equipped with specialized computing hardware, advanced cooling systems, and access to enormous amounts of reliable electricity.

Several companies are capitalizing on this infrastructure gap. Data center REITs and infrastructure developers are now the unsung heroes of the AI era.

Equinix has taken an aggressive stance, constructing several xScale facilities designed specifically for large-scale AI workloads. In 2024, the company established a $15 billion joint venture to purchase land and build state-of-the-art facilities capable of housing next-generation AI operations.

Digital Realty launched its first U.S. Hyperscale Data Center Fund in 2025, committing to support up to $10 billion in data center investments. Earlier, in late 2023, it partnered with Blackstone on a $7 billion joint venture focused on building large-scale infrastructure.

Brookfield Infrastructure brings a different approach. Having acquired multiple data center platforms globally, the company now operates over 140 data centers worldwide, with a current capacity of 1.6 gigawatts. More importantly, management has identified potential to develop an additional 3.4 GW across its existing platform. The company is also exploring advanced fuel cell technology from Bloom Energy to power these facilities, recognizing that conventional power sources may not be sufficient.

The Energy Equation: Power as the Real Constraint

This is where the story becomes critical. Advanced AI data center campuses typically require over 1 gigawatt of electricity—equivalent to powering approximately 750,000 homes. Leading AI firms, including Anthropic, estimate that the U.S. alone will need at least 50 GW of dedicated AI power capacity by 2028.

This demand is creating unprecedented opportunities for energy infrastructure companies.

NextEra Energy is positioning itself as a central player in this transformation. The company is exploring investments exceeding $25 billion to develop electricity transmission projects that will expand grid capacity. Beyond transmission, NextEra maintains an extensive natural gas pipeline network and is a major developer of renewable energy. The company has also formed strategic partnerships with Google to advance nuclear energy deployment and co-develop large-scale data center campuses.

Williams, a major natural gas pipeline operator, is equally positioned for growth. The company has multiple projects underway to increase gas supply across the country, with expected completion through 2030. Beyond current construction, Williams is evaluating another 30 projects worth over $14 billion that could be built between 2027 and 2033. Notably, the company has $5.1 billion of projects under construction specifically designed to develop and operate gas-powered generating capacity for data center customers.

Why Infrastructure Investors Should Be on Your Radar

The AI gold rush narrative typically focuses on the most obvious winners—chip designers and software companies. But economic history shows us that infrastructure plays often deliver outsized returns to patient investors.

Just as railroad stocks and utility companies powered previous technological revolutions, energy and data center infrastructure providers are positioned to capture sustained cash flows from the decades-long AI buildout. These are businesses with predictable demand, long-term contracts, and recurring revenue streams.

Companies from Brookfield Infrastructure to NextEra Energy to Williams aren’t betting on AI’s success—they’re building the foundation that makes AI success inevitable. For investors willing to look beyond the headlines, this infrastructure boom represents one of the most compelling opportunities of the coming decade.