Data Center Build-Out Supports High Valuations: Bilicic
George Bilicic of Lazard and Andrew Calder of Kirkland & Ellis discuss the ongoing wave of consolidation in the energy and utility sectors, driven by the accelerating demand for data centers and AI infrastructure. They note that while mega-deals are likely to continue steadily, the primary driver is not cost savings but the need to access capital for significant infrastructure investments. Bilicic suggests that smaller, subscale utility companies may consider mergers or take-private transactions to gain the necessary scale and financial backing to meet growing demands.
The demand for data centers and AI is creating a massive need for capital investment in the energy and utility sectors, potentially leading to significant consolidation and impacting the scale and availability of essential infrastructure.
