Beyond the AI boom: Where digital infrastructure investors may find long-term value

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Artificial intelligence is transforming the digital infrastructure landscape at unprecedented speed. But as capital floods into the sector, a critical question is emerging: where will the most durable value be created? 

In this exclusive interview with PERE, Morgan Laughlin, Global Head of Digital Infrastructure at PGIM, shares his perspective on one of the most significant shifts currently reshaping real estate and infrastructure investing. Drawing on decades of experience in the sector, he explains why the rise of AI is creating clear winners and losers within the data centre market, and why investors must look beyond headline demand growth to identify potential long-term opportunities.

Key Takeaways: 
  • How AI is changing data centre demand across Asia-Pacific
  • Why low-latency infrastructure may offer differentiated investment characteristics
  • The impact of digital infrastructure on wider capital allocation decisions
  • Key risks and opportunities emerging across the sector
  • What the future may hold for data centre investing as institutional adoption accelerates

We are more comfortable investing in a low-supply story than an overwhelming demand thesis.

Morgan Laughlin
Global Head of Digital Infrastructure, PGIM

Inside the interview 


Not all data centres will benefit equally from AI 

As AI adoption accelerates, the market is increasingly splitting into two distinct segments: large-scale AI training campuses and low-latency infrastructure serving cloud, enterprise and retail users. Understanding the difference could prove critical for investors seeking resilient long-term value.  
 

Why scarcity may matter more than demand 

While AI training campuses are attracting significant attention, our view is that the most compelling opportunities may lie elsewhere. The interview explores how structural barriers to supply, particularly in key metropolitan markets, are creating attractive dynamics for cloud-capable, low-latency assets.  
 

The capital shift already underway 

Digital infrastructure is attracting increasing allocations from institutional investors across both real estate and infrastructure portfolios. Morgan discusses how this reallocation of capital could influence pricing, risk-adjusted returns and investment opportunities well beyond the data centre sector itself.  
 

A differentiated approach to investing in digital infrastructure 

The discussion also examines our real estate-led perspective on the sector and why an asset-level focus may offer a distinctive lens through which to assess long-term value creation in an increasingly competitive market.  

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