On Wednesday, Deepwater Asset Management’s managing partner Gene Munster said the $40 billion Texas-based data center project backed by Nvidia Corp. (NASDAQ:NVDA), Elon Musk’s xAI, Microsoft Corp. (NASDAQ:MSFT) and BlackRock Inc. (NYSE:BLK) underscores the massive long-term potential of artificial intelligence.
This is one of the world’s largest data center operators with nearly 80 facilities, in a $40 billion deal aimed at securing critical computing capacity for AI.
The U.S.-based data center operator is being purchased from Australian firm Macquarie Asset Management, marking the first deal for the AI Infrastructure Partnership, which also counts Abu Dhabi’s MGX fund and xAI among its backers.
Analysts Say AI Growth Driven By Data Centers, Not Financing
Munster’s comments align with the remarks from Bank of America Securities analyst Vivek Arya, who said investor fears about vendor financing in the U.S. semiconductor industry are overstated.
Arya argued that the real AI growth driver lies in data center expansion and power availability, not speculative financing.
He estimates AI-related capital expenditures could reach $1.2 trillion annually by 2030, adding that vendor-backed deals like Nvidia’s $100 billion partnership with OpenAI make up only a fraction of total AI spending.
Matt Maley’s Strategy for the CPI Countdown
As the CPI release approaches and earnings season accelerates, volatility is ramping up across equities, metals, and tech. On Wednesday, October 22 at 6 PM ET, Benzinga’s Chief Market Strategist Matt Maley will break down how he is positioning for the week ahead, including the sectors he believes could rotate and the tactical trades designed to capture both sides of the move.
