DigitalBridge Group (DBRG) TD Cowen 10th Annual Communications Infrastructure Summit summary

Key business developments and strategic focus

• Tower and fiber companies report strong organic growth, with foundational investments now yielding results and leadership teams strengthened.

• AI and GenAI are driving unprecedented demand for data centers and fiber, with hyperscalers signing multi-billion dollar contracts and network densification accelerating.

• Mobile data consumption is expected to double in the next 4-5 years, with AI expected to further boost mobile network demand as inference workloads shift to mobile.

• Carriers have increased prices by $3 billion without impacting churn, indicating strong pricing power and inelastic demand.

• Densification and infill are the next phases for towers, driven by spectrum scarcity and higher frequency rollouts, leading to more sites and smaller cell spacing.

AI, data center, and fiber market trends

• AI is seen as a durable, transformative trend, with CapEx for AI infrastructure projected to reach $200 billion this year and $250 billion in two years.

• Data center leasing is on a 6 GW annual trajectory, with a roadmap to 80 GW, but power transmission and grid constraints are major challenges.

• The market is flooded with digital infrastructure investment opportunities, making differentiation and proven returns critical for capital raising.

• Private wealth and new capital channels are being tapped, with private investors showing strong interest in AI data centers and related infrastructure.

• Asia and select emerging markets are seen as attractive for new investment, with fewer supply chain and power issues compared to the US and Europe.

Internal use of AI and operational efficiency

• Fiber companies are aggressively automating and integrating AI into IT systems, aiming for predictive analytics and operational efficiency.

• Tower companies use AI primarily for data analytics, site selection, and underwriting, with limited internal headcount and automation needs.

• Both sectors see AI as essential for future-proofing operations and managing increasing complexity.