Neil Shen in Conversation with TPG, Brookfield, and Macquarie: From Data Centers to Energy Transformation, Where is the Next Stop for Alternative Investments?
From November 3rd to 5th, the Hong Kong Monetary Authority hosted the International Financial Leaders Investment Summit for the fourth consecutive year. As an annual high - profile financial event in the Asia - Pacific region, this year's summit was themed "Navigating Change and Forging Ahead". It gathered around 300 international financial leaders, including over a hundred group chairmen or chief executives from well - known institutions such as HSBC, UBS, Morgan Stanley, Goldman Sachs, and Blackstone. They jointly discussed important trends in the macro - economy, trade, and digital fields, as well as the most prominent opportunities and risks in different financial markets, asset classes, and regions in the coming years.
A group photo of the guests.
At the round - table dialogue on "Alternative Investments in Energy Transition", Neil Shen, the founding and executive partner of Sequoia China, served as the host. He shared in - depth insights with industry heavyweights such as Jim Coulter, co - founding partner and executive chairman of TPG, Bruce Flatt, chairman and CEO of Brookfield Asset Management, and Shemara Wikramanayake, CEO of Macquarie Bank.
Neil Shen started the discussion by pointing out that the rapid development of AI is accelerating the global energy demand. He discussed with the guests the "energy issue" in data center construction and whether there is a bubble in AI investment.
Flatt said that the current data center construction is just part of laying the infrastructure for the future digital economy. He emphasized that the situation of data center construction is different from that of fiber - optic network construction in the past. Since data centers now have long - term and stable lease contracts, there is no bubble.
Wikramanayake said that Macquarie's investment strategy in the data center field is to get involved in the early stage and promote projects from scratch and from small to large. Although Macquarie has sold some data centers, it still holds data center assets in Asia, the United States, and Europe and continues to be optimistic about investment opportunities in this field.
Coulter said that despite the high enthusiasm for AI and data center investment in the market, the real problem lies in how to build and manage these data centers. He pointed out that there is currently a shortage of sufficient professional talents in the market to support large - scale data center construction. Investors need to pay attention to these issues, as they will determine the success or failure of data center construction.
It has become an industry consensus that energy is the key bottleneck for AI development. Neil Shen invited the three guests to share the "exciting opportunities" they saw in new energy and the broader energy field, as well as the corresponding investment logic and strategies.
In response, Coulter said that a fundamental shift in the thinking mode of new energy investment is needed. In the next few years, the electricity demand of data centers will increase significantly, which will have a profound impact on the energy market. Flatt said that nuclear energy is an important part of the future energy market, especially against the backdrop of a significant increase in electricity demand. Wikramanayake believed that new energy investment is not only to meet the development needs of AI but also includes the electrification of transportation, industry, and other fields. Therefore, attention should be paid to the balance between energy availability, affordability, and climate impact.
Regarding traditional infrastructure investment, Neil Shen asked Flatt for his latest views and judgments on the global commercial real estate market. Flatt said that although the real estate market is cyclical, the current market is different from the past, mainly due to the rapid rise in interest rates and changes in people's work patterns. He believes that the fundamentals of most commercial real estate markets remain strong. Especially as interest rates stabilize and more people return to the office, the commercial real estate market is recovering.