Beyond Data Centres: Tribeca on Asia’s Infra Opportunities

Investors are increasingly drawn to data centres, especially with the rise of AI infrastructure, leading to crowded trades.

“Really, in the last six months, that’s what everyone has been talking about. Not just in the news, but most of our investor questions – I would say about 85 per cent of them – are about data centres,” Sivanesarajah said.

Ragavan Sivanesarajah, Co-Portfolio Manager of Tribeca Asia Infrastructure Fund, noted a surge in investment in data centres in 2024, with $22 billion invested in the first five months alone. However, he highlights that while data centres are likely to continue to enjoy the tailwind of artificial intelligence (AI), a number of other infrastructure subsectors could be flying under the radar, such as healthcare infrastructure and airports. These sectors, driven by factors like ageing populations and a growing middle class in Asia, offer strong long-term growth opportunities.

Susanta Mazumdar, Portfolio Manager of Tribeca Asia Infrastructure Fund, added investing in infrastructure is “not about catching a wave”.

“What AI is going through with data centres, we do not know how long it will exist, and as we have seen in the case of all cyclical investments, in the tech sector or any other sector, it comes in waves and it goes in waves,” Mazumdar said.

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