UniSuper, one of Australia's largest pension funds with A$180 billion ($127 billion) in assets, is avoiding direct investments in data centers. Chief Investment Officer John Pearce argues that companies harnessing AI will benefit more than infrastructure providers. This stance follows a 42% drop in Nextdc Ltd. shares after a profit warning due to power delays and community opposition. The fund, which holds positions in Nextdc, believes the AI boom's biggest winners will be technology users rather than builders.
The market reaction highlights growing skepticism about data center profitability. While demand for computing power surges, challenges like energy constraints and local resistance are squeezing margins. UniSuper's position reflects a broader shift toward identifying AI application leaders over infrastructure developers.
Analysts note this strategy could reshape institutional investment patterns. As AI transforms industries, the focus may move from physical assets to software and platform companies that leverage the technology effectively.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing