1、Market ReviewThe Digital Power ProblemInfrastructureNovember 20242Key Takeaways3Exploring the Digital Power Problem10Digital Investments in the Middle of a Hype Cycle11Is the Market Ready to Solve Big Problems?The Digital Power ProblemWritten by:Raj AgrawalPartner and Global Head of InfrastructureKE

2、Y TAKEAWAYS Two of our major themes,digitalization and the energy transition,are converging.Data centers and other large-scale power users are starting to have trouble sourcing enough electricity for their operations.Supported by transformative technologies like artificial intelligence,the increased

3、 demand for data creates a compelling backdrop to invest in the hard assets enabling the digital ecosystem.This starts with data centers,but also includes fiber optic networks,wireless towers,and other assets.Large-scale investment in both power generation and transmission will be needed to solve th

4、e digital power problem,along with new technology and creative solutions.We believe this will lead to an increase in energy transition investments and technologies,as well as ongoing opportunities in conventional energy.Digitalization,the energy transition,and the digital power problem are massive c

5、hallenges that require scaled capital and deep sector expertise to solve,but also present a tremendous investment opportunity to those with the ability to solve them.KKR Infrastructure|November 2024 2Exploring the Digital Power Problemare essential to enabling these systems and services,as are fiber

6、 optic networks and wireless towers.According to McKinsey estimates,developers will have to build in a mere six years twice the data center capacity brought online since 2000 to avoid a data processing deficit.For data centers alone,electricity demand is projected to nearly triple by 2030.3 A single