4 Real Opportunities Hiding Behind The AI Hype

Core Insights - The current hype surrounding artificial intelligence (AI) is reminiscent of past trends in crypto, cannabis, and 3D printing, where many become instant experts without deep understanding [2][3] - KKR emphasizes that while there may be bubbles in certain AI-related sectors, the infrastructure needed for AI is a multi-trillion-dollar opportunity that will grow over decades [6][7] Infrastructure and Investment Opportunities - The capital committed to AI-related infrastructure is approximately 5% of U.S. GDP and is growing at high single- to low double-digit rates, with global data-center capital expenditure needs approaching several trillion dollars by the end of the decade [7][8] - The current AI expansion is compared to historical industrial revolutions, with the primary bottleneck being power, land, and infrastructure rather than capital [8][9] Key Players in the AI Buildout - Digital Realty Trust (NYSE: DLR): A leading global data-center platform with the necessary scale, land, and connectivity to support AI tenants, ensuring long-term contracts with strong customers [18][19] - NRG Energy (NYSE: NRG): Positioned to benefit from the demand for firm power as data centers require significant electricity to operate [22] - Prologis (NYSE: PLD): A logistics REIT that is also a major landholder with zoning and power access ideal for data-center development, already controlling suitable sites [23][24] - Quanta Services (NYSE: PWR): Focused on rebuilding the U.S. grid infrastructure, essential for supporting the growing demand for AI and data centers [26] Long-term Perspective - The AI revolution will be defined by the foundational infrastructure rather than the flashy applications, with capital flowing into the companies that build, power, and connect these facilities [27][28]