The private equity firm that created ⁠Digital Realty ⁠sees a "wealth of opportunities" in digital infrastructure, but avoids hyperscaler mega-projects, says Mark Prybutok, a Managing Director at ⁠GI Partners⁠ and Head of the Data Infrastructure strategy.

In 2001, GI Partners made its very first investment as a firm in a portfolio of distressed data centers reeling from the dotcom crash. In 2004, that portfolio was listed publicy as Digital Realty, now the world's largest data-center REIT. 

Today, GI Partners has $45 billion in assets under management, and oversees three strategies: private equity, real estate and digital infrastructure. In a wide-ranging interview with Cool Vector, Prybutok shares his excitement about investing in a rapidly expanding market, but offers guidance to investors about nuanced differences between business models, locations and commercial strategies. 

Prybutok also describes GI Partners' strategy in digital infrastructure as being more akin to private equity, with a focus on operating businesses, management teams and value-add strategies. 

Among the key takeaways from the interview: 

Digital infrastructure deserves a substantial allocation in the portfolio. As digital giants drive global economic growth, Prybutok argues digital infrastructure should potentially command a larger allocation in institutional portfolios than the modest levels seen today: “If you think about infrastructure as the physical underpinnings of the economy… why shouldn’t it be significantly higher than 20%, 25%?” 

Success in digital infrastructure requires sector nuance. With growing competition from generalist investors, GI Partners differentiates itself through deep sectoral focus and an ability to identify winners in niche sub-markets: “We’re identifying businesses that we in particular think are going to be the winners within a sub-sector of a sub-sector.”

Edge infrastructure is a bigger opportunity than centralized mega-infrastructure. While hyperscaler campuses get headlines, GI sees greater long-term opportunity in edge infrastructure tailored to mid-sized businesses and real-world IT needs: “There’s a massive opportunity, multiples larger in aggregate, than these massive concentrated AI training data centers, but located closer to those end use points.”

Digital infrastructure should be tech-enhancing, not tech-exposed. GI Partners focuses on durable physical infrastructure, steering clear of reliance on rapidly evolving technologies that risk obsolescence: “You want to make sure you’re not getting stuck investing in a generation of technology that is then made obsolete by improvements that happen in the next generation.”

AI and IoT are fueling an urgent need for more infrastructure. From video surveillance to industrial automation, AI’s real-world applications are just beginning, creating vast demand for data centers and networks: “We see real-world examples… where the number of people reviewing and responding to alerts is going down exponentially as the AI improves.”

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The launch of a new data center 'pod' business is being met with surging customer demand, highlighting the need for edge digital infrastructure in remote areas, according to the leadership of Duos Edge AI. 

In an extensive interview with Cool Vector,  Doug Recker, President of Duos Edge AI, and Adrian Goldfarb, CFO of parent company Duos Technologies Group, describe how edge data centers offer an affordable, scalable solution to bring low-latency connectivity to remote regions underserved by traditional infrastructure. “When we drop one of our pods, you’re right around a million dollars," says Recker. "So you can justify the expense and the revenue by deploying these, and the savings to the customer out there justifies the [co-location]."

Other key takeaways from the Duos Edge AI interview on Cool Vector:

Edge pods serve diverse and growing demand—from remote school districts to ranchers using drones and AI—accelerating a trend of localized cloud computing. “They’re now going to drones and AI to manage their cattle," says Recker, of cattle ranchers in remote parts of Texas. "Well, they can’t do all this data and AI without having compute on site.”

Compared to traditional data centers that can take years to build, Duos Edge AI delivers a fully operational edge pod in less than four months.

With revenue potential of up to $400,000 per year, and rapid deployment costs of around $1 million, edge pods deliver attractive ROI within four years. “The expected revenue from that is somewhere between $300,000 and $400,000 per year, which means the return on it is anywhere between two and a half and four years," says Goldfarb.

The explosion of data demand—especially in remote healthcare and education—has transformed edge data centers from speculative infrastructure to essential utility. "The need is there," says Recker. "We’re not trying to invent a product. Now we’re trying to fix a need, which is always better to be on that side.”

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Private equity firm ⁠Actis⁠ is building data centers around the world while maintaining strict standards around sustainable energy, water and social impact. And the firm's impact is about to get bigger. Actis and General Atlantic recently merged to create an $87 billion investment platform, with Actis focused on the huge opportunity in sustainable infrastructure, largely in growth markets across Asia, Latin America, Africa and Eastern Europe.

Digital infrastructure is a significant part of the investment mandate for Actis, with 17 offices across the world. The firm draws on its on-the-ground expertise in real estate, renewable energy and infrastructure to tackle the many burgeoning opportunities in data centers, wireless towers and fiber.

In a wide-ranging interview, Thomas Liu and James Magor, Partner and Director, respectively, describe a global build-out of data centers in global growth markets, most of which have not previously offered data center sites to hyperscaler customers. Each market has a very different regulatory regime, but most favor data sovereignty, and are led by governments aware of the developmental benefits that digital infrastructure can bring to their economies.

Driving the development are expansion-minded hyperscaler customers like Amazon and Microsoft, which are locked in a competition for AI dominance around the world. Liu notes these hyperscalers need local partners with insights into local regulations, and the ability to maintain relationships of trust with local communities. For example, Actis has taken a successful digital literacy program from its operations in Nigeria and started using it to engage with communities across Asia.

Liu and Magor discuss Actis' recent investment in Epoch Digital, a diversified data center platform with developments planned in South Korea, Malaysia and Taiwan. Magor says the importance of resilient building techniques was highlighted by a recent Taiwanese typhoon that hit Epoch's construction site there.

Liu explains the benefits of merging with General Atlantic, including an expanded investor base and the ability for Actis to draw on General Atlantic's deep relationships with TMT customers across the world.

Visit the Cool Vector website here: ⁠https://coolvectormedia.com/

Data center real estate investment trusts (REITs), like Equinix and Digital Realty Trust, differ from traditional REITs in their higher operational intensity and reliance on artificial-intelligence tailwinds for growth, says Harold Chen, Director of Commercial Real Estate at Fitch Ratings.

Chen, whose team has assigned investment-grade ratings to Equinix and Digital Realty, says the companies benefit from surging demand related to AI. Of the two, Digital Realty has a higher concentration of hyperscaler customers, defined as big-tech, data-center customers like Microsoft, Mega and Amazon. The upside of hyperscaler concentration is longer-term leases, while the downside is customer concentration and the inability to more frequently reprice rent rates, says Chen, adding data center REITs have a history of only single-digit customer churn. Data centers that cater to co-location customers tend to have shorter leases, he says.

Data-center REITs also differ from traditional REITs in their "significantly higher levels of operational intensity," says Chen. Complexities like power, cooling and interconnectivity make data-center REITs "significantly different beasts."

Chen also discusses with Cool Vector the impact that ESG and sustainability initiatives have on Fitch ratings, and the historic challenge for data center companies to access certain forms of financing, like asset backed securities (ABS).

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"I kid you not. . . at least once a week, I've got a conversation going with somebody who sits in digital infrastructure private equity, and they say to me, 'If you know somebody, or a team, that does XYZ in the data center space, let me know. I'd love to meet them, because that is the type of business model that we could put hundreds of millions, if not not billions, into.'"

The amount of private capital available for deployment in digital infrastructure investments is far outpacing the supply of operational talent necessary to put it to work. Patrick Reyes, a Principal at infrastructure-focused executive search firm, ⁠One Search,⁠ says large private equity and infrastructure firms eager to enter the digital infrastructure asset class often have deeply researched ideas about where to invest, but lack the platform company or management team to executive the strategy.

Reyes shares these observations in the Cool Vector episode, "Why Comp is Surging for Digital Infrastructure Investors and Operators."

Cool Vector website: ⁠https://coolvectormedia.com/⁠

Partners Group was already bullish on AI when, in 2022, the firm invested $1.2 billion in EdgeCore Digital Infrastructure. Then the debut of ChatGPT a few weeks later blew to lid off their initial assumptions of growth.

In the post-ChatGPT world, the hyperscaler market served by EdgeCore saw an "explosion of demand for capacity," says Diffendal who, in a wide-ranging interview, explains the criticality of strong management in responding to the unexpectedly strong leasing activity.

Two years later, the growth of EdgeCore Digital Infrastructure was such that "we basically ran out of money," says Diffendal. In September, Partners Group raised another $1.9 billion in capital, much of it in the form of co-investment from limited partners, institutional investors who had many questions about power availability and exit opportunities.

Diffendal also discusses the imperative of keeping the data centers powered to a "five-nines" (99.999%) standard of up-time, to avoid getting financially penalized by "demanding" hyperscaler customers. As investors in data-center hub Northern Virginia, Diffendal describes the general shortage of all forms of labor there, including electricians.

Partners Group's original thesis was that data centers would benefit from the tailwinds of cloud computing, video and AI. Diffendal adds: "I really think we're just at the very beginning of understanding what the commercial implications of AI will be."

Visit the Cool Vector video-podcast website: https://coolvectormedia.com/

A conversation with Omar Jaffrey, founder of digital infrastructure private capital firm ⁠Palistar Capital⁠, which is currently investing from a $1.9 billion fund.

Jaffrey gives a grand tour through the digital infrastructure investment opportunity, in which he says builders of scale will have advantages in winning customers. He cautions that some investors confuse the full stack of technology, services and human capital involved in the telecommunications industry with core infrastructure, the later of which has a history of more consistent performance.

Among other topics, Jaffrey also makes the case for the long-term durability of infrastructure hard assets, comments on the pressures faced by potential sellers of wireless rooftop and tower assets, and explains the many options for revenue streams that owners of many towers can realize.

Cool Vector website: https://coolvectormedia.com/

John Siegel, a Partner at private equity firm Columbia Capital, offers a deep dive into the physical assets necessary to power an AI-driven internet, including the fiber optic cables that connect the growing population of data centers around the world, and the nations jockeying for position to build digital infrastructure hubs.

In a wide-ranging conversation, John shares his views on the demand drivers of information sharing, including not only AI but the massive proliferation of devices that connect to the internet. He details the data center build-out across Asia and explains why governments are so eager to develop hubs like his home base in Northern Virginia.

A long-time telecom investor and "qualified bull," John also shares his analysis of a wave of bankruptcies in the early 2000s (which lost billions for private equity investors) and what lessons these might have for the current digital infrastructure build-out.

About Cool Vector

Cool Vector is a video-podcast created to chart the rise of data centers and the digital infrastructure asset class. On a regular basis, the podcast will convene expert conversations about the investment opportunities and macro themes driving the build-out of digital infrastructure, including private capital dynamics, performance expectations, energy demand, geopolitical influences, sustainability opportunities, development and construction, technology and community impact.

Cool Vector is hosted by financial journalist David Snow, a long-time chronicler of the alternative investment market. This interview should not be considered investment advice or a solicitation to invest, and the views and opinions expressed herein are those of the speakers and do not necessarily reflect the views or positions of any entities they represent.

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Watch this interview on the Cool Vector YouTube channel: YouTube

Digital infrastructure has a voracious appetite for energy, but the electric utility industry is filled with apprehension and lacks 'muscle memory' to 'build big things,' according to Brian Janous, co-founder of sustainable energy specialist Cloverleaf Infrastructure, as well as the former head of data center energy for Microsoft.

In a wide-ranging interview with Cool Vector, Janous describes how his mandate at Microsoft went from relative obscurity to a top-order concern among the company's leadership. He discusses how data center sites are identified, evaluated and the importance of finding a willing counter-party in the local utility.

Janous also discusses the importance of community engagement, the risks of project delays and regulatory lags, the dominace of solar as a form of renewable energy for data centers, and the criticality of long-term power purchase agreements.

About Cool Vector

Cool Vector is a video-podcast created to chart the rise of data centers and the digital infrastructure asset class. On a regular basis, the podcast convenes expert conversations about the investment opportunities and macro themes driving the build-out of digital infrastructure, including private capital dynamics, performance expectations, energy demand, geopolitical influences, sustainability opportunities, development and construction, technology and community impact.

Cool Vector is hosted by financial journalist David Snow, a long-time chronicler of the alternative investment market.

Watch Full Episodes of Cool Vector on YouTube and Spotify.

Financial journalist David Snow introduces Cool Vector, a new video-podcast that will chart the rise of data centers and the digital infrastructure asset class.

On a regular basis, Cool Vector will convene expert conversations about the role that institutional investment capital will play in the build-out of digital infrastructure around the world, and focus on the overlapping long-term trends of digitalization, the rise of private capital, changing energy demand, changing land and real estate use, innovation in sustainability, national security, and many other topics.

Full video episodes of Cool Vector will live on the Cool Vector YouTube channel as well as the major podcasting platforms like Spotify. Clips of each episode will be promoted on LinkedIn, Instagram and TikTok.

The Cool Vector video-podcast homepage is here: https://coolvectormedia.com/

Interest in ETA careers is rising "exponentially" among MBA candidates at what is widely regarded as the intellectual birthplace of Entrepreneurship-Through-Acquisition, according to three leaders of the Stanford Graduate School of Business' ETA club.

In a joint interview with Search Party, president Michelle Nguyen and vice presidents Ruby Au and Laura Kiehl share details of the club's mission to prepare students for the rigors of ETA search, in which post-MBA entrepreneurs, backed by investors, have two years to find and acquire a high-quality, lower-middle-market business, and, if successful, take the reins as CEO. 

According to Au, ETA increasingly is viewed as a "risk-adjusted way to do a startup," appealing to ambitious operators who want ownership without starting from scratch. "If you really want to run something and have your own piece of something, then search fund starts to make a lot of sense," she says. 

Nguyen, Au and Kiehl also share details of their own professional backgrounds and what led them to become ETA-curious. 

Important takeaways from the conversation:

ETA searchers are backed more like athletes choosing coaches than founders pitching VCs—fit and mentorship matter as much as capital. 

While ETA offers autonomy and potential reward, its journey is uncertain and emotionally demanding, requiring grit, adaptability, and community support. "Search could be very lonely, could be very stressful. It takes determination as well as a very can-do attitude to go through the search process," says Nguyen.

The Stanford ETA Club has become a hub for investor access and student exploration, offering a blend of networking, mentorship, and tailored coursework. "We are kind of like the orchestrator, trying to select based on experience, knowledge, know-how, and just kind of value to the students, but also to the investors," says Kiehl.

Stanford GSB's faculty have published some of the most influential studies in the search fund space, including the Search Fund Primer and Search Fund Study, which have become essential reading for aspiring searchers and investors who back searchers. These materials helped define the model, demystify the process, and give institutional legitimacy to what was once a niche strategy.

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#stanfordbusiness #stanford #mba #business #privateequity

Data center investment strategies that focus on ground-up development in unconventional locations are more complex, and therefore more likely to generate stronger returns, says Mark McComiskey, a partner at AVAIO Capital.

In an extensive conversation with Cool Vector, McComiskey explains that many private capital firms active in digital infrastructure invest in existing assets, or compete for sites in overheated hubs like Northern Virginia. By contrast, AVAIO is simultaneously developing six sites in less competitive markets, positioning itself as data center provider of choice to large customers.

“The best returns come from building infrastructure where it doesn’t already exist,” McComiskey says. “We’re taking on complexity—power procurement, entitlement, permitting—but that’s where the opportunity lies.”

AVAIO’s approach involves incremental risk management—deploying capital only as sites pass key milestones. This method ensures projects are fully de-risked before significant investment, reducing exposure to cost overruns or regulatory hurdles, he says. 

At present, AVAIO is bringing to market a diverse portfolio of sites. “Instead of pitching one-off locations, we’re offering AI-focused campuses, cloud deployments, and hyperscaler-ready sites across North America and Europe,” says McComiskey.

For decades, data centers have clustered in a handful of hubs in the US, but AVAIO anticipated grid congestion, and decided to look elsewhere. “In Santa Clara, new power access could take a decade,” McComiskey says. “We secured 100 megawatts of power just 30 minutes outside the city—that’s the kind of forward-thinking strategy this market demands.”

The continued high demand for data center capacity is influencing negotiating dynamics between providers and customers. Customers in need of cloud and AI compute are willing to pay premiums for sites that can deliver in the next 24 to 36 months. “If you can build in 2025 or 2026, you have leverage,” says McComiskey. “If you’re offering capacity in 2030, the power shifts back to the customer.”

With billions pouring into AI-driven infrastructure, some market observers worry the sector is overheating. McComiskey acknowledges signs of speculation—like developers stockpiling electrical components without confirmed projects—but argues that irrational exuberance is still under control. “No one’s building speculative capacity without customers lined up,” he says. “Unlike real estate bubbles, where demand can disappear overnight, AI and cloud computing growth isn’t slowing down anytime soon.”

Follow Cool Vector on Spotify: https://open.spotify.com/show/4nsZ5LKkE5sBSb04tAf94P?si=f047c3d6b664458e 

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Infranity's ambitions to become a global player in the infrastructure debt market have advanced with the establishment of a US office. Cool Vector caught up with two Infranity partners to learn about the sustainable lending opportunity in North America, the risk-reward profile of co-location data centers and the limits of the energy transition. 

Infranity, based in Paris, launched seven years ago in partnership with Italian insurer and asset manager Generali. The firm has a mandate to lend to the expanding infrastructure market in a way that supports sutainability goals, says Sacha Kamp, Investment Managing Director and Head of Investment Debt. Infranity's backers want to see their capital "creating positive change."

Paul Colatrella, Managing Director and Head of North American Debt, explains that while the focus on sustainability is more pronounced among European investors, his recent meetings with North American investors reveal a "material segment in the US and Canada" that integrate sustainability goals into overall investment objectives. 

In the interview, Colatrella and Kamp also discuss the firm's digital infrastructure deal flow, led by co-location data center opportunities, fiber, and small-cell investments. The firm is seeing good opportunities in tier two and tier three markets in North America. Infranity is focused on co-location opportunities in part because these assets have more diversified customer bases, and their more complex business models require more careful due diligence. Infranity looks to invest between $100 million and $200 million per transaction. 

While not every emerging low-carbon power technology has led to a viable business model, Colatrella and Kamp say the rising demand for power is producing lending opportunities across the energy transition landscape. "The massive scale of not just building the data centers but the energy need behind them is I think something that might shock really shock a lot of Americans," notes Colatrella. "We're talking about replacing and expanding a very large percentage of our electrical grid if we're going to achieve the AI targets and the quantum computing targets."

Watch the episode on YouTube: https://youtu.be/o3m9WcoetVM

Visit the Cool Vector Media website: https://coolvectormedia.com/

A shortage of construction workers with skills specific to data centers is hindering the growth of digital infrastructure, says Amazon Web Service's former Worldwide Head of Engineering, Construction and Real Estate.

In a wide-ranging Cool Vector interview, Sandra Benson, now Vice President of Industry Transformation at Procore Technologies, says of the global race to construct data centers: “ We literally can't build fast enough. The biggest reason we can't is we don't have the labor to build fast enough. And even if we had the bodies, there's also skill development” necessary. 

The proliferation of data center projects around the world has contributed to the demand for skilled labor, which has led to a rise in compensation. “You can go to a trade school, come out and the kind of salary in general that you can command now versus even five or 10 years ago is exponentially different,” says Benson. 

In her Cool Vector interview, Benson discusses her professional background as a woman in a male-dominated industry, as well as the public relations issue faced by construction. “ I think it’s a great industry, but we have a perception problem,” says Benson. “I've said this for almost 30 years. People think of construction as very backwards, right? That it’s not very digital. And that is absolutely not true.”

Benson also shares insights into skills necessary for success in data center construction, including installation skills as well as contracting projects with full commissioning, meaning the mandate to make the many components of a data center site work together, although these may be overseen by different contractors. 

Benson also discusses the challenge of integrating sustainability goals into data center construction projects in the midst of a labor shortage, as well as the sense of excitement among construction executives for their growing backlogs of projects.

In his 35 years in the power business, ⁠EnCap Investment⁠'s James Hughes has never seen a market as "strange" as the current one, driven by data center inelastic demand as well as industrial projects across the US. 

Hughes is a Managing Partner and head of the EnCap's energy transition business, which last May raised a $1.5 billion fund to invest in power, low-carbon fuels and carbon management. In a wide-ranging interview with Cool Vector, Hughes says hyperscaler demand for data centers has created an attractive supply-demand dynamic for his strategy. "I've never seen a large class of customer, a large set of demand, that is price inelastic," he says. 

Hughes predicts a five- to seven-year window during which he is confident "we will be able to take capital and earn a return that is a premium return on that capital."

Hughes shares his analysis of the the "Republican trifecta" in Washington and its likely impact on his strategy. While the removal of incentives for low-carbon fuels and carbon management companies may challenge those business models, Hughes says any changes to the Biden-administration Inflation Reduction Act will have little impact EnCap's opportunities in power generation. 

"If I can execute a power project, there is somebody that's going to buy that power under a long term fixed price agreement," says Hughes. "The challenge is not identifying a customer for the power. The challenge is, okay, can I find a site and get control of that site? Can I gain access to the grid?"

Formed in 1988, EnCap is one of the largest energy-focused private equity firms in the world. Hughes says his team has the experience to recognize opportunities in a rapidly changing market. "What we bring to the table is gray hair, and having done this for a very long time and having lived through several cycles," he says. 

Hughes shares is views on the prospects for renewable energy in digital infrastructure, noting the huge interest in using "clean, green" power, offset by an urgency to get projects built using whatever energy sources are available, led by oil and gas. 

He gives his take on an oft-repeated question in today's digital infrastructure and energy market: Are we in a bubble? Hughes predicts efficiencies in the next generation of GPUs, but says he doesn't see any trend that will reverse excess power demand in the coming years.

Watch Cool Vector on Spotify: ⁠https://open.spotify.com/show/4nsZ5LKkE5sBSb04tAf94P?si=f047c3d6b664458e ⁠

Visit the Cool Vector website: ⁠https://coolvectormedia.com

The NEW Episode of Cool Vector delves into the sudden rise of DeepSeek, NVIDIA’s share swoon, the implications of overbuilding in the data center space, Stargate’s shock-and-awe, $500 billion digital infra announcement, tough sledding in the private capital markets, and why Phil, Nabeel and David enjoy the topic of data centers so much. 

In “Cool Vector Hot Takes,” Phillip Koblence, Nabeel Mahmood, and David Snow engage in a lively, irreverent conversation, drawing on decades of experience in the data center and private capital industries.

Regarding DeepSeek’s more-with-less breakthrough, Koblence says, “ My initial take was, wow, that was quick. The overarching demand that's been generated in the super, mega, hyperscale data center space has been a little overhyped. You might not need 100 or 300 KW in a single rack in order to achieve some of these things.”

Mahmood adds: “We’ve been talking about it for a long time. People have been talking about the overdesign in the data center and compute space, and the underutilization.”

Despite evidence of potential overbuilding in the data center space, Mahmood and Koblence agree all that compute will eventually be utilized. Demand may increase even quicker, says Mahmood, referencing the Javons Paradox, by which technology made faster, cheaper and easier prompts a surge in usage. 

The three discussed Stargate’s impressive consortium of backers, including SoftBank, Oracle and Microsoft, and their decision to highlight the dollar amount of the digital infrastructure mega-project over other metrics. 

The talk turns to dynamics in the private capital market, which, Snow explains, is suffering from a dearth of cash distributions, restricting, for now, the amount of capital raised earmarked for digital infrastructure. 

Finally, the three editorial advisors to Cool Vector discuss what they find so intellectually fascinating about the data center industry.

Cool Vector Website: coolvectormedia.com

Nomad Futurist Website: https://nomadfuturist.org/

The data center industry is uniquely positioned to integrate workers from a broad array of backgrounds, which is good news, given the rapid aging of the industry's original workforce.

According to three veterans of the industry, more needs to be done to elevate awareness of careers in data centers among workers in other industries, as well as among young people raised in a digital world, but unaware of the physical infrastructure necessary to keep the data flowing.

This wide-ranging Cool Vector conversation includes Phill Lawson-Shanks of ⁠Aligned Data Centers⁠, Nabeel Mahmood of ⁠Mahmood⁠, and Phillip Koblence of Critical Ventures. All three are helping build a non-profit foundation called ⁠Nomad Futurist⁠, dedicated to demystifying the data center industry.

Mahmood, CEO and co-founder of Nomad Futurist, begins the conversation with an overview of how much more digital the world will become, and the necessity of infrastructure to service this enormously expanded coverage. At the same time, the humans charged with building and managing the infrastructure are leaving the industry. Mahmood estimates that within five years, "there's going to be a retirement party. . . every day of the week."

The demand for workers will not be confined within the walls of data centers themselves. Lawson-Shanks, an advisor to Nomad Futurist, anticipates a proliferation of new businesses around data centers globally, similar to the innovation acceleration that accompanied the advent of the iPhone. "We're at an iPhone moment again," he says. "No one anticipated the ecosystem that would develop around that piece of technology."

There is "an amazing tsumani [of technology] that's coming," Lawson-Shanks says.

Koblence, the other co-founder of Nomad Futurist, details the many types of career paths available within broader digital infrastructure. Koblence stresses the industry needs workers of every background. "People think you need to be a computer geek in order to work in a data center digital infrastructure, and that's simply not the case," he says. "If anything, the majority of the roles are non-computer focused roles, and more involved in the development and deployment of these sites that need to be everywhere."

Koblence adds: "The people that are most successful in our industry tend to be the ones that have come from other industries, that have the ability to articulate and communicate in a way that is not necessarily second nature to someone who has a computer-focused or engineering-focused mindset."

Lawson-Shanks notes his company, Aligned Data Centers, has had success recruiting workers from the US Navy nuclear submarine program, because these veterans are used to "having that methodology of procedures and policies. You don't just do things - there are checks and balances before every change."

Koblence and Mahmood describe their visits to high schools, sometimes with tech executives from well known companies like Netflix and TikTok in tow, to help teenagers understand digital infrastructure. They say these native-digital young people are very engaged, smart, have access to a universe of information, and are concerned about environmental impact.

The three veterans also agree that more needs to be done to educate communities about the positive impacts of data centers beyond direct and indirect job creation, including tax revenue.

Visit the Nomad Futurist website: https://nomadfuturist.org/

Visit the Cool Vector website: https://coolvectormedia.com/

David Capobianco's company, ⁠LandBridge⁠, owns 270,000 surface acres in West Texas, and he's pleased to explain why the land's profitability has tripled in three years. The reason has to do with data centers.

LandBridge is a publicly traded affiliate of Five Point Energy, of which Capobianco is CEO. The company's share price is being carefully watched by investors looking for evidence of a new paradigm in land ownership. Acreage once used primarily for ranching or energy extraction in the Permian Basin is now seen as ideal for data centers.

n an wide-ranging interview with Cool Vector, Capobianco details the attractive features of his "powered land" in the Delaware sub-basin, spanning West Texas and New Mexico: it sits on top of the lowest-cost natural gas in North America, it has plentiful produced and brackish water for cooling, it is proximate to good fiber connectivity and carbon sequestration resources, and it is governed by an exceptionally friendly Texas regulatory regime.

What's more, the Delaware land is far away from any population center, removing community apprehension as a barrier to development.

LandBridge's surface acreage is "open for business," says Capobianco, meaning any potential digital infrastructure partner can expect rapid support in the development of data centers, including proprietary water infrastructure developed by LandBridge, which processes some 4 million barrels of water daily across the Permian. Cooling capabilities have become more and more critical as new technology, such as Nvidia's Blackwell chips, runs hotter and hotter.

Capobianco describes the opportunity for renewable energy in the Permian as important but not sufficient on its own. Because hperscalers are locked in an "existential" battle for data center development, the more consistent energy provided by bountiful West Texas natural gas is in high demand. He says the only renewable energy capable of fully powering a data center is nuclear.

He also details the business plan of LandBridge, which makes money from land leases as well as power margins and some mineral rights. Capobianco predicts well-suited land in the Permian and elsewhere will "re-rate" now that investors recognize a net new source of revenue in the form of digital infrastructure.

Says Capobianco: "The need is great, the race is on."

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Visit the Cool Vector website: ⁠https://coolvectormedia.com/⁠

Watch clips from the episode by following Cool Vector on LinkedIn: ⁠https://www.linkedin.com/company/cool-vector-media/posts/?feedView=all⁠ and YouTube: ⁠https://www.youtube.com/@CoolVector