VSS Capital Partners has taken a minority stake in Cordoba, an LA-based engineering, construction and program management company. Sai Parepally, a principal at VSS, explained that the US is investing in infrastructure across transportation, water, energy transition, and public facilities. "We view AI as a net positive and believe there is no way AI can reasonably displace the need for infrastructure itself," Parepally said. "On the contrary, the buildout of data centers has created considerable knock-on effects driving the modernization of power, water and other infrastructure to support them." Founded in 1983 by George L Pla, Cordoba focuses on program management and construction management, serving as the project owner's representative. Demand is expected to grow with the buildout of data centers.

The US has a data center vacancy rate of around 1 percent. Parepally said Cordoba has been at the center of managing California's "most well-known and economically important" infrastructure projects. "The US's existing infrastructure is aging and requires substantial investment in modernization and maintenance. Cordoba, with established teams in communities throughout California and beyond, is well-positioned to keep pace with strong demand from an expanding public and institutional customer base," he said.

VSS is looking at the M&A strategy. "The fragmentation allows Cordoba to find the right firm to partner with," Parepally added. "For founders who are seeking an alternative to traditional bank financing, we can provide both debt and equity capital. Our flexible investment approach means we can tailor capital solutions to entrepreneurs' needs while offering the benefits of a trusted partner like VSS.".