Ares Management Corp. is ramping up fundraising for digital infrastructure, aiming to capture the surge of capital flowing into data centers as artificial intelligence fuels a global build-out, Bloomberg reported, citing an investor presentation.
The Los Angeles-based investment firm is targeting more than $8 billion in equity in the near term to back data center projects in London, Japan, and Brazil. It also raised its fundraising target for its wealth unit by $25 billion to $125 billion by 2028, a move that could generate about $800 million in fees.
The presentation underlined two growth engines for Ares and other asset managers: data centers and retail investors. Ares estimates individuals control about $140 trillion in private markets wealth, yet only a small fraction has been tapped for alternative investments.
Ares raised $2.4 billion for data centers in the first half of 2025, providing access to revenue streams from fund management, property management, leasing, and incentive fees. The firm has a dedicated digital infrastructure fund in Japan and last year bought GLP Capital Partners’ operations outside China for as much as $5.2 billion, doubling its real estate assets.
The demand outlook is immense: BloombergNEF projects data centers could consume 1,600 terawatt-hours of electricity by 2035, equal to 4.4% of global usage — which would make them the world’s fourth-largest “country” by energy demand.
Still, the financing rush carries risks. UBS Group estimates private debt exposure to the tech sector hit $450 billion at the start of 2025, up $100 billion in a year. Ares CFO Jarrod Phillips said the firm is focusing on pre-leased projects with 15-year terms and rent escalators to mitigate risks. “Not all data centers are created equal,” he said, noting the strategy centers on assets with significant cloud capacity.
Beyond digital infrastructure, Ares is also leaning into secondaries, or discounted resales of private market stakes. The firm expects the segment to more than double in the next five years as investors seek liquidity. Ares has already bought about $7 billion in continuation vehicles tied to private equity assets.
The firm also plans to raise $70 billion for alternative credit by 2028, spanning products from auto loans to mortgages. As of June 30, Ares managed $47 billion in that platform, with roughly half in non-investment-grade assets — a mix the firm says generates fee income equivalent to over $180 billion of investment-grade holdings.
