Three sectors that reduce the need for people to travel, and one where being there is the point.
AI is fundamentally changing the power density, cooling requirements and physical specifications of data center infrastructure. While traditional server racks typically operate at single-digit kilowatt densities, high-performance AI workloads can require several times that capacity, increasingly necessitating liquid cooling. Facilities that can support these loads, with power secured to serve them, remain a limited part of the market. Our investment focus spans latency-sensitive edge facilities supporting AI inference and large-scale campuses designed for AI training and cloud workloads, with power procurement and development feasibility at the center of our underwriting.
As fulfillment shifts from physical retail locations to distribution networks, the efficiency and technical specifications of logistics facilities become more important, and automation is raising the standard further. We assess clear height, dock ratio, floor loading, temperature control and the power and structural capacity that automation requires. We target assets where functional deficiencies create a pricing discount that exceeds the cost of remediation, providing a measurable opportunity for value creation.
Power availability increasingly determines the scalability and economic viability of digital infrastructure. We are therefore evaluating opportunities across fuel storage, generation and integrated energy infrastructure. These are areas of active research rather than committed investments.
Hospitality represents a deliberate exception to our infrastructure-focused strategy. Unlike many activities increasingly delivered through digital networks, the value of hospitality remains rooted in physical experience and location. Hotels are also operationally intensive assets, where brand positioning, operator selection and asset management can materially influence performance. We focus on urban business hotels with diversified demand drivers and identifiable opportunities for operational improvement.
Grid capacity in Korea's major demand centers is an increasingly significant constraint on new data center development. We are researching assets that supply power more directly, on the view that, over a fund's life, this may prove more valuable than competing for sites that are already connected.
Grid connection requirements and regulatory approvals vary significantly by project size, location and network conditions. We assess these constraints at the earliest stage of underwriting, recognizing that changes in regulation or available grid capacity can materially affect development timelines.
Ammonia is emerging as a potential carrier for internationally traded hydrogen and as a fuel for certain power-generation applications. This could create demand for specialized port-side storage and handling infrastructure, subject to the development of commercially viable supply chains and long-term offtake arrangements.
Low-carbon ammonia could support the decarbonization of dispatchable power generation, potentially complementing variable renewable energy. Its emissions benefit depends on how the ammonia is produced and on the share of fossil fuel still burned alongside it. Commercial viability will depend on fuel costs, emissions performance, regulatory treatment and long-term offtake arrangements.
Integrating power generation with data center infrastructure could reduce dependence on constrained grid connections and provide greater flexibility in campus planning. We are assessing the technical, regulatory and commercial conditions required to make this model investable.
