On Infralogic Crossroads Infrastructure Podcast, Pete Scherer and Dima Orendarets Examine Convergence of Data Center Investments

In an Infralogic Crossroads Infrastructure Podcast, real estate investments and transactions counsel Pete Scherer and Dima Orendarets discussed recent developments in data center investing.

Pete and Dima address topics including the difference between the traditional real estate investor approach to data centers and infrastructure investor strategy.

They examine the factors driving the convergence in real estate and infrastructure investment. Factors include the elevated interest rate environment, challenging fundraising environment, artificial intelligence driven demand for data centers and private equity firms seeking new investment opportunities and strategies.

They note the trend of blended infrastructure and real estate teams deriving synergy from infrastructure professionals with experience in underwriting operational risks and real estate teams skilled at handling title, connectivity, and property risks.

Beyond data centers, the convergence of other asset classes in real estate and infrastructure investing includes: electric vehicle charging stations, battery storage, telecommunication towers and senior housing facilities.

The Crossroads podcast cites a Ropes & Gray Viewpoints column authored by Pete, partner Jack Creedon, global co-head of the real estate investments and transactions group and co-lead of the firm’s infrastructure industry group, and private equity partner Brandon Howald on What’s in a Name? A Lot When it Comes to Data Center Investing.