314. Connecting the world: digital infrastructure's role in the AI era

Tom Walker, manager of the Schroder Digital Infrastructure fund, explore the burgeoning sector of digital infrastructure in this episode. He discusses how advancements, particularly in artificial intelligence (AI), have significantly amplified the demand for digital infrastructure. He also outlines the portfolio's composition, emphasising data centres, mobile towers, and fibre networks. Despite challenges like rising interest rates and material costs, Tom highlights that the sector's long-term outlook remains strong due to increasing global connectivity needs sharing two specific stocks that are well-positioned to benefit.What’s covered in this episode: What’s the outlook for digital infrastructure?How has AI increased demand for the sector?The importance of data centres in an AI worldDo high interest rates create a challenge for the sector?What type of companies is the portfolio exposed to?Digital infrastructure in emerging marketsThe significance of smartphonesTwo examples of underlying holdings in the portfolioMore about the fund:Schroder Digital Infrastructure seeks to take advantage of the necessity for a sustainable transition to a digital economy. Managed by Tom Walker and Hugo Machin, the fund invests in around 40 companies across both developed and emerging economies. The managers have over 20 years’ experience investing in digital infrastructure with this fund ideally positioned to tap into the post Covid-world and the exponential growth in the sector needed to provide future global economic growth.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.