When Mike Armstrong first joined GI Partners in 2014, digital infrastructure assets that went up for auction would attract maybe five bidders. Fast forward to today's heated market, and Armstrong says between 20 to 30 bidders compete for assets in a sale process.

Armstrong, a Managing Director and Head of Technology and Science Investments,  tells Cool Vector there are positives to the increased competition, such as pricing validation. In the meantime, he says “you have to be sharp” in order to stand out from the many new entrants to the market.

Key Takeaways:

• Cap rates are the signal to watch: In a market flooded with new capital and product, where cap rates settle will reveal the ecosystem’s collective confidence in future growth.

• AI’s full economic impact remains unknowable, but the next 12–24 months will be decisive in determining what it means for data center deployment and investment returns.

• Competition has exploded — bid sheets that once had five names now carry 20 to 30 — making sharp conviction and proprietary relationships the only sustainable edge.

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