By Tamas Mark, Global Head of Real Assets
At a glance
AI is reshaping the data centre investment landscape
For years, data centres have benefitted from growing cloud adoption, digital transformation and rising data consumption. AI has fundamentally changed the scale of that opportunity.
According to McKinsey, global demand for data centre capacity could nearly triple by 2030, with AI workloads accounting for approximately 70% of total demand. Meeting this growth could require up to US$6.7 trillion in investment across data centre infrastructure.
For private markets investors, this is creating a compelling investment theme across:
- Data centre development platforms
- Digital infrastructure funds
- Renewable energy assets
- Power transmission networks
- Private credit financing solutions
However, rapid growth is exposing a new challenge. Power access is becoming just as important as access to capital. Indeed, McKinsey notes that data centre electricity demand in the U.S. alone could rise from around 3% to 4% of total power consumption today to approximately 11% to 12% by 2030.
This shift means sustainability is no longer simply an ESG consideration; it’s becoming a core operational and investment issue.
Power procurement is becoming a strategic advantage
The sector’s biggest challenge is no longer identifying demand but rather securing sufficient sustainable power to support growth.
Leading operators are increasingly leveraging:
- Long-term renewable Power Purchase Agreements (PPAs)
- Virtual Power Purchase Agreements (VPPAs)
- Renewable Energy Certificates (RECs)
- Battery storage solutions
- Co-located renewable generation assets
Large technology companies are already investing directly in renewable energy infrastructure to secure reliable future access to power while reducing exposure to energy market volatility.
For investors, energy strategy is now a strong signal of investment potential, indicating whether an asset has the capability to scale.
Sustainability reporting: from compliance requirement to value driver
As sustainability becomes central to the operational resilience of data centres, sustainability reporting is shifting from compliance requirement to critical value driver – directly influencing investor confidence and asset value.
Investors increasingly want visibility over:
- Power Usage Effectiveness (PUE)
- Water Usage Effectiveness (WUE)
- Carbon Usage Effectiveness (CUE)
- Scope 1, 2 and 3 emissions
- Renewable energy sourcing
- Climate resilience strategies
These metrics are becoming essential due diligence requirements for institutional investors allocating capital to data centre platforms.
The European Union’s reporting requirements and wider global regulatory developments are also increasing scrutiny on how operators measure and disclose environmental performance. At the same time, tenants are demanding greater transparency around the sustainability credentials of the facilities they occupy.
As a result, operational data is becoming just as important as financial data.
The overlooked role of the middle office
Much of the industry discussion focuses on developers, operators and technology providers. Yet the middle office plays a critical role in delivering sustainable operations at scale.
Monitoring sustainability performance requires accurate, consistent and auditable data collection across multiple sites and jurisdictions.
Middle-office teams are responsible for:
- Capturing sustainability metrics
- Managing reporting frameworks
- Supporting regulatory disclosures
- Producing investor reporting
- Monitoring portfolio-wide performance
These capabilities allow investors and operators to move beyond retrospective reporting and towards real-time operational oversight.
As data centre portfolios become more geographically diverse, robust reporting frameworks become increasingly important for governance, risk management and investment decision-making.
How technology is transforming sustainable operations
The back office is also evolving from a support function into a strategic enabler.
Advanced data and analytics platforms now provide operators with real-time visibility across energy consumption, water usage and asset performance.
AI-enabled monitoring tools can help organisations:
- Optimise cooling performance
- Improve energy efficiency
- Predict equipment failures
- Reduce operational downtime
- Automate ESG reporting
These capabilities are becoming increasingly valuable as operators seek to balance rapid expansion with sustainability commitments.
The ability to demonstrate measurable improvements in environmental performance may soon become a competitive advantage when attracting both investors and customers.
Sustainable growth will require more than new capacity
For investors, the opportunity presented by data centres is significant. However, scaling responsibly will require more than building new facilities.
Success will depend on creating operating models that combine:
- Sustainable energy sourcing
- High-quality operational data
- Transparent ESG reporting
- Strong governance
- Technology-enabled oversight
The conversation around data centres is often dominated by AI, cloud computing and digital innovation. Yet the real differentiator may lie behind the scenes.
The organisations best positioned to capture the next phase of growth will be those that recognise middle- and back-office functions not as administrative necessities, but as essential drivers of sustainable long-term value creation.
How IQ-EQ can help
IQ-EQ supports asset managers, infrastructure investors and data centre operators across the full investment lifecycle. Through our combination of fund administration, corporate services, governance expertise, portfolio reporting and technology-enabled data solutions, we help clients build scalable operating models that support growth, transparency and long-term sustainability.
Speak to our digital infrastructure specialists to learn how we can support your data centre investment strategy.
About the author
Tamas Mark is IQ-EQ’s Global Head of Real Assets, responsible for implementing our real estate and infrastructure strategy worldwide, building real asset centres of excellence across the business and optimising service offerings for clients in this space. With over 20 years’ experience in the industry, he has extensive knowledge of managing complex real estate structures holding assets across many property sectors. More recently, he has built focused expertise in data centre investing and related sustainability and operational challenges. He leads IQ-EQ’s thought leadership in this hot-topic area and was notably invited to speak at the Sustainable Real Estate Forum during Climate Week NYC 2026.
