Building the AI factories of tomorrow

Oct 22, 2025
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Hyperscalers and data center developers are fueling an unprecedented infrastructure buildout at a global scale—rewiring how capital flows into the AI ecosystem across land, power, data centers, and compute. Innovative financial solutions that open the door for diverse pockets of capital to participate are needed to unlock this new era and accelerate growth.

  • Building the AI factories of tomorrow
    Jason Tofsky and Alexander Tingle, who sit in the Technology, Media, and Telecom group within Investment Banking, discuss how capital markets are innovating to help build the AI factories of tomorrow.

The pace of AI transformation is creating new questions and obstacles. How will developers continue recyling capital to meet unprecedented demand? With compute equipment costing 3-4x more than physical data centers*, how are AI labs and neoclouds sourcing chips to remain competitive? These dynamics require innovative financing solutions capable of addressing the nuances of an increasingly complex ecosystem.

AI infrastructure is currently funded in parts by disparate investors, but bespoke capital solutions can enable underinvested pools of capital to engage across the AI value chain—a trend that is already driving record activity amongst asset managers.

As AI continues advancing at breakneck speed, the efficient sourcing, deploying, and recycling of capital is vital. Capital markets are innovating in parallel to help build the AI factories of tomorrow.

This next era of digital infrastructure will involve rewiring how capital flows into the AI ecosystem. Our work centers on collaborating with first-of-their-kind platforms that link bespoke M&A and capital formation solutions across the risk curve; unlocking underinvested pools of capital that will define the next decade of asset management growth.
Jason Tofsky
Partner, Technology, Media, and Telecom, Investment Banking
  • Powering the AI Era
    Learn more about the creative solutions required across capital, energy, and infrastructure for powering the AI era.

 

* Source: Corporate reports, 650 Group, Mercury Research, Yale, FactSet and NSR estimates and analysis

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