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Data centers are increasingly becoming an integral part of global economic growth and a fundamental societal need. However, growing demand for data centers is not without its drawbacks. We forecast global AI-related data center revenues will reach $650 billion by 2028, from less than $200 billion in 2023. Private credit is taking advantage of this opportunity, emerging as a prominent financing source for data centers by providing flexible capital solutions that support the acceleration and advancement in the asset class.
S&P Global Ratings estimates incremental U.S. power demand from data centers could be 150-250 terawatt hours (TWh) between 2024 and 2030. Grid infrastructure will be the biggest hurdle to power supply growth, notably because of long planning and permitting processes.
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