Wall Street's AI bet: Own the data centers, collect the rent

Top alternative asset managers are positioning themselves as landlords of the AI boom, leasing data centers to tech giants on long-term contracts as worries grow that debt-laden neoclouds could default. Blue Owl says it has more than 130 data centers operating or under construction, nearly 14 gigawatts of leased and owned capacity, with another 21 gigawatts in its pipeline, typically leased for 15 to 20 years with annual rent escalators. "We are not making a bet on AI when we invest in data centers," CFO Alan Kirshenbaum said. "We are taking Microsoft, Amazon, Meta, credit risk." Blue Owl shares rose 6.5% on Thursday and Ares Management gained 2%.