Private Equity Propels America to the Front of the AI Race
Investing over $200 Billion since 2020 in Data Centers, Semiconductors, & Energy Infrastructure
As artificial intelligence (AI) adoption accelerates across the world, private equity investments in AI, data centers, and other forms of information technology infrastructure are fueling innovation and providing security benefits for all Americans. From strengthening cybersecurity to powering semiconductor and datacenter development, private equity firms are supplying the capital and expertise that companies need to remain as the leader of innovation in this global digital transformation race.
Private fund investments are supporting technological advancements, increasing productivity, and creating new job opportunities for Americans across the country. Since 2020, private equity firms have invested over $1 trillion into information technology and provided critical industry expertise to thousands of companies on the leading edge of American innovation.
Semiconductors: A $500 Billion Private Sector Commitment
Semiconductors are the backbone of AI hardware, and private equity firms are playing a foundational role in strengthening the industry. Recently, a consortium of private equity firms, led by AIC member Apollo Global Management, committed $750 million in financing to Wolfspeed, the world’s leading producer of silicon carbide technology, a key semiconductor component. This important investment demonstrates how private capital is supporting AI innovation and strengthening the U.S. semiconductor supply chain.
Datacenters: Powering AI’s Expansion
As demand for AI-driven computing surges, private equity is investing in and expanding data center infrastructure, including the critical computing facilities that provide power for AI’s real time processing and advanced computing requirements. These private equity-backed datacenter investments are already transforming local economies by creating jobs and providing businesses with access to high-performance computing.
For example, global data center REIT CyrusOne partnered with private equity with a $8 billion financing package to expand its presence in Illinois, Texas, and Ohio. Additionally, major private equity firms are leading billion-dollar deals in data center and energy infrastructure, including a $50 billion strategic partnership between KKR and Energy Capital Partners to invest in data centers and power generation projects as AI adoption scales globally.
Energy Infrastructure: Fueling AI’s Future
AI datacenters require significant amounts of energy to power and train machines on large language learning models. Private equity investments in a range of energy sources—from natural gas to renewables—are building out a reliable power supply to support AI growth while maintaining U.S. leadership in technology innovation. In 2024, investments in energy infrastructure surged, with private equity supporting natural gas and alternative energy sources to meet the growing power demands of AI-driven industries.
This balanced approach ensures AI data centers operate efficiently while also integrating a number of efficient energy sources into America’s national energy infrastructure. Recently, Blackstone reached a deal to acquire Potomac Energy Center, a natural gas power plant in the datacenter hub of Virginia where demand for consistent power output runs high.
Private Equity is Driving AI Transformation Across the U.S.
On the first day of his new term, President Trump announced a historic private sector commitment of up to $500 billion in AI infrastructure through Stargate, a joint venture between OpenAI, SoftBank, and Oracle. This private capital initiative will fund data center construction and create over 100,000 new jobs, underscoring the growing importance of investing in AI infrastructure through public and private sector partnerships.
Private equity is at the forefront of this transformation, accelerating AI adoption, strengthening critical infrastructure, and securing America’s leadership in emerging technologies. Through continued investments in semiconductors, data centers, and energy, private equity is shaping the future of AI and driving the next wave of technological innovation.
