Data Center Boom Brings Risks of Overbuilding, Ares Says

The flood of capital pouring into AI infrastructure is raising the risks of overcapacity as the world’s biggest investors look to cash in on the artificial intelligence boom, according to Ares Management Corp. Co-President Kipp deVeer.

“If you look historically in areas like this over the past 20 or 30 years, typically when this much capacity comes online, some of it at the end of the day has to be marginal,” deVeer said, speaking on the sidelines of the Greenwich Economic Forum in Connecticut on Tuesday. “These trends tend to lead to overbuilds in certain places, so us being selective and measured in what we build is important.”