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Bloomberg Television

How do data centers make money? KKRโ€™s Szlezak explains #ai #datacenter ๐Ÿ˜‹

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we have digital infrastructure broadly defined which captures data centers as one of the three pillars including mobile infrastructure and and fixed line infrastructure is one of our key themes so today we have four platforms globally in data centers over 100 facilities uh 40 billion of Enterprise Value across those four four data center platforms and about $110 billion of pipeline of new opportunities that we’re evaluating development opportunities for those data centers give us a sense of the business model as it were I mean you put the cap in you fund the building of a data center how does the revenue come back I mean do you have to wait for down the road or is your immediate Revenue in customers who are paying yeah so most of the data center capacity that’s built out it’s anchored by a customer contract so it’s a take- or pay contract so typically we would build a facility which we take some level of development risk on that facility but it’s largely contained since this is an industrial you know facility in in many ways uh and then we lease that facility to our to typically hypers scale customers under a long-term take or pay contract anywhere from 10 to 15 years is there Revenue coming in almost from day one yes there is

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