Observed Signal · Sep 15, 2026 · Policy Update · Source: CNBC Technology · Impact: 3/5 · Sentiment: Positive
Infrastructure Market: AI slowdown not 'end of world' for data centers: Digital Realty CEO
Digital Realty CEO Andrew Power asserts that an AI development slowdown, pledged by major AI players Anthropic, OpenAI, and xAI, is not catastrophic for data center real estate. He argues that broader digital transformation and cloud computing growth remain strong demand drivers. The article notes that AI could account for 70% of global data center capacity demand by 2030, requiring nearly $7 trillion in capital outlay according to McKinsey. While stocks of data center REITs like Digital Realty and Equinix slumped, Power emphasizes that the company's funding model and $20 billion development pipeline position it well. JLL's Andrew Batson highlights that future data center growth lies in inference (adoption of AI tools), not just training new models, with only 1 in 4 Americans using AI daily.
Insights from a major data center REIT CEO on the resilience of infrastructure demand amid AI slowdown rhetoric, relevant to the intersection of AI, cloud, and real estate for AdTech/MarTech infrastructure.
Key Takeaways & Evidence Grounding
- Digital Realty CEO Andrew Power says AI slowdown pledges by Anthropic, OpenAI, and xAI are not 'pencils down' for AI or data center real estate.
- McKinsey report projects AI could account for about 70% of global data center capacity demand by 2030.
- McKinsey estimates nearly $7 trillion in capital outlay needed to meet total data center demand by 2030.
- Digital Realty's development pipeline totals $20 billion under construction, up from $10 billion at end of 2023.
- JLL's Andrew Batson states that only 1 in 4 Americans use AI daily, indicating significant growth runway for inference-driven demand.
Connected Companies & Entities
7 Entities mappedX.AI Corp.
Developer of Grok models, APIs and enterprise AI products.
Anthropic
Foundation model company selling AI assistants and model APIs.
“Digital Realty CEO Andrew Power, however, said the pledges for a slowdown by major AI players Anthropic, OpenAI and xAI do not mean 'pencils...”
Blackstone
Alternative asset manager focused on private market investing.
“Batson pointed to institutional money from Blackstone, BlackRock and KKR, which he said 'have high conviction in this space.'...”
Equinix
Digital infrastructure operator for colocation and private interconnection.
“Digital Realty and Equinix, two of the largest data center REITs, saw their stocks slump on Monday following the weekend warnings over AI ad...”
KKR
Public alternative asset manager focused on private market investing.
“Batson pointed to institutional money from Blackstone, BlackRock and KKR, which he said 'have high conviction in this space.'...”
OpenAI
Foundation model company selling AI software, APIs and subscriptions.
“Digital Realty CEO Andrew Power, however, said the pledges for a slowdown by major AI players Anthropic, OpenAI and xAI do not mean 'pencils...”
BlackRock
Global asset manager with ETF, investment and technology revenues.
“Batson pointed to institutional money from Blackstone, BlackRock and KKR, which he said 'have high conviction in this space.'...”
Ontology Mapping & Concepts
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