The AI gold rush: Goldman Sachs bets billions on data centers and electricity
Published: October 17, 2025
The explosion of AI tools like ChatGPT and Google Gemini isn’t just happening in the cloud: it requires physical infrastructure. Behind the scenes, the AI boom requires massive, power-hungry data centers and powerful energy grids to run them. Wall Street is taking note, and Goldman Sachs (NYSE:GS) positions itself as the bank that finances this new digital world.
Goldman Sachs takes a major strategic step by creating a specialized group within its Global Banking division. This new unit has one main objective: structuring and underwriting multi-billion dollar infrastructure deals on a global scale, with a focus on everything needed to power artificial intelligence.
Why the AI boom is shaping Wall Street decisions
The move is driven by an increase in demand for capital to build the “physical Internet.” This includes:
- Mega data centers: AI models require constant and massive computing power, requiring much larger and more complex data centers than ever before.
- Renewable energy systems: These data centers have enormous power requirements. Goldman is looking to finance new solar and wind farms, as well as necessary grid upgrades, including powering AI infrastructure.
- Digital connectivity: Funding agreements for high-speed fiber optic cables and other digital communications systems that connect these global AI hubs.
Essentially, Goldman wants a share of the financing opportunity that underpins the entire AI revolution, recognizing that this infrastructure offers reliable long-term returns.
Beyond AI: what else will the group finance?
While AI development is the primary focus, Goldman Sachs’ new infrastructure group will also target more traditional tangible assets that promise stable cash flows.
The group will finance essential global projects, including:
- Transport networks: Traditional assets such as airports, major toll roads and port upgrades.
- Essential Utilities: Funding utility companies and other energy-related projects outside of the AI sector.
This broad focus allows the bank to exploit infrastructure investment gaps in both developed markets (such as the United States) and emerging markets.
How Goldman will make money
For the general investor, it is essential to understand how a bank profits from these massive transactions. Goldman Sachs acts as both lender and organizer:
- Direct loans: The bank will use its own capital to make direct loans to companies building data centers or energy systems.
- Sell the debt: It will then package a portion of these loans – called “tranches” of debt – and sell them to large institutional investors, such as insurance companies and pension funds.
By holding on to some of the debt while selling the rest, Goldman maintains flexibility, earns fees for arranging deals and transfers some of the risk to other large investors. The move reflects a broader trend in which large investment banks are increasingly entering the lucrative world of private credit and direct lending.
Goldman’s New Strategy: What It Means for the American Public
As countries prioritize digital transformation and clean energy, demand for capital intensifies. This pivot from Goldman Sachs signals a powerful macroeconomic truth:
- The physical cost of AI is enormous: The growth of AI is no longer just about technology; it’s a history of infrastructure and energy. The race to build these systems will strain America’s power grids, intensify energy demand and potentially increase utility costs, all while spurring massive construction and clean energy initiatives.
- Change in the financial market: The move confirms that infrastructure, due to its sustainability and long-term cash flow, has become one of the most attractive investment classes for the world’s largest banks.
📌 The big questions (people ask too)
Q: Why is Goldman Sachs increasing infrastructure financing now? A: Because the growth of AI is driving unprecedented demand for new data centers, power infrastructure, and connectivity, all of which require massive capital. Goldman wants to be the bank that provides this financing.
Q: What types of projects will the new group mainly finance? A: Mainly massive AI infrastructure (data centers and associated power systems), as well as core traditional assets such as transportation and energy projects on a global scale.
Q: Will Goldman keep all the loans it makes? A: The bank plans to retain some debt exposure on its balance sheet, but will sell most of its debt to institutional investors and insurance companies in order to spread risks and maintain capital flexibility.
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