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Beyond the Bubble: Why AI Infrastructure Will Compound Long after the Hype | KKR

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When a single chipmaker, NVIDIA, makes up 8% of the S&P 500, it’s reasonable to wonder whether an AI bubble is inflating. Lately, that scrutiny has extended to data center investment. A few statistics help illustrate both the scale and the constraints: Sign up to subscribe to the latest insights from KKR EXHIBIT 1: AI-Related Capex Make Up Roughly 5% of U.S. GDP and Is Growing ~10% Per Year, On Par With the Late-90s / Early 2000s Tech Boom Our view: Yes, there’s froth. Yes, there will be a shake‑out. However, current absorption rates show no signs of overbuilding in the world’s most active market, the United States, according to JLL Research (Exhibit 2). And in the longer term, we think demand should justify much of today’s data center build-out. Models and applications will keep advancing, and they will pull capacity from systems capable of powering them at scale. EXHIBIT 2: Available Data Center Space Will Be Scarce at Least through 2027 Past technology-related infrastructure hype cy

Investment Insights Beyond the Bubble: Why We Think AI Infrastructure Will Compound Long after the Hype November 2025 6 minute read Waldemar Szlezak Andrew Peisch Kathleen Lawler Joshua Ho-Walker Dark mode saves between 3% - 6% energy. By reducing energy consumption we could help minimize damage to the environment. Turn On Dark Mode Turn Off Dark Mode Sign up to subscribe to the latest insights from KKR Email Address Please enter your business email. Please enter a valid email address. Please enter a professional email address. SUBSCRIBE TO INSIGHTS Key Takeaways \r\n<li>There is both froth in

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