Data Center Boom Brings Risks of Overbuilding, Ares’ Says

The article discusses the potential risks of overbuilding in the data center industry due to the influx of capital investment in AI infrastructure. Ares Management Corp. Co-President Kipp deVeer warns that the world's largest investors are rushing to capitalize on the AI boom, which could lead to overcapacity in the data center market. The article highlights that the surge of capital investment in AI-related infrastructure is fueling a data center construction boom, as companies and investors seek to meet the growing demand for computational power and storage. However, deVeer cautions that this rapid expansion could result in an oversupply of data center capacity, potentially leading to challenges for the industry. The article does not provide specific details on the scale or timeline of the potential overbuilding, but it suggests that the data center industry should be cautious about the risks of overinvestment and maintain a balanced approach to infrastructure development.