DigitalBridge Group (DBRG) RBC 2024 Global Communications Infrastructure Conference summary

Macro environment and regulatory outlook

• Digital infrastructure investment is resilient to political shifts, with minimal expected FCC changes regardless of U.S. election outcomes.

• The Department of Energy is increasingly focused on data center power consumption and its impact on consumers, especially under a potential Harris administration.

• Rate cuts are anticipated to be moderate, with 125-150 bps expected over three to four cuts, but long-term investment horizons lessen their impact.

• CapEx spending in digital infrastructure remains robust, with no signs of deceleration.

Regional market dynamics

• Asia-Pacific markets face grid sensitivities and long lead times for power approvals, with secondary zones like Johor and Osaka emerging as key demand centers.

• Europe presents greater grid challenges than the U.S., with power access issues in cities like Amsterdam, Frankfurt, London, and Dublin.

• In Brazil, grid independence and renewable energy provide a competitive edge, with Campinas becoming a major data center hub.

Fundraising and investor trends

• Institutional LPs are prioritizing DPI (Distributions to Paid-In Capital), track record, and proprietary co-investment opportunities.

• Investors are consolidating relationships with established managers, favoring safety and proven performance.

• Unique deal access and co-investment opportunities are key differentiators in successful fundraising.