Following his participation on a panel at Bisnow’s DICE: South conference, Member Jeffrey Moerdler was quoted in a Bisnow article about the AI-driven boom in data center development and the challenges early-stage AI companies face in securing these deals. The article details a $5B data center development deal with AI cloud firm CoreWeave and reveals that established developers don’t consider the firm a risky investment as opposed to other AI startups.

Jeff says, “You have hyperscalers who have huge balance sheets to support the AI industry, but a lot of the AI companies are at an early stage, operating with substantial amounts of equity investments and doing the initial deals with huge security deposits backed by cash or letters of credit from their investors. That will change as they generate customers and create their own credit profile, but most of them just don't have the track record.”

Source

Bisnow