The spike in electricity demand, driven in large part by the AI and data center boom, is upending longstanding trends across the infrastructure sector, Ares Head of Infrastructure Equity Keith Derman said.

“The dollars associated with AI are unlike anything we’ve ever seen within infrastructure or, frankly, I think in our society, in our economy,” Derman said on Infralogic’s Crossroads podcast.

“It’s having meaningful effects on the broader capital markets.”

Derman specifically noted the surging value of gas-fired generation, and the impact this has had on demand for new generation.

“Power plants are worth more, they’re running more, power prices are higher, new power plants are getting developed and getting built,” he said.

Derman also discussed opportunities outside AI, data center, and power, the changing meaning of ESG, and how the upcoming state and federal elections may impact the infrastructure sector.

To listen to the podcast, click here.