26/9/2025
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mins read
AI is no longer just a technology race — it is fast becoming a competition between nations. Hyperscalers and global investors are deciding where to place billions of dollars in AI data center infrastructure, and only those countries that prepare the right foundations will capture this opportunity.
The reality is simple: AI workloads demand unprecedented levels of power, connectivity, and supportive policy. Without them, even the most ambitious AI strategies will remain only on paper. With them, a country can position itself as a true hub for the digital economy of the future.
Here are the three fundamentals that matter most:
1. Power – AI data centers consume huge and constant baseloads. Governments must deliver low-cost, long-term power contracts, build high-voltage grid access into designated AI and data center zones, and ensure redundancy. Stability and green sourcing are no longer optional — they are investment prerequisites.
2. Connectivity – Global AI players look for subsea diversity, open landing stations, and edge-ready 5G. Open-access CLS hubs lower costs and boost competition, while widespread 5G and edge deployments unlock the ultra-low latency that AI workloads demand. Without these, a country cannot integrate into the global AI network.
3. Policy & Ecosystem – Regulation and talent pipelines decide whether infrastructure turns into a sustainable AI hub. Governments must create predictable licensing regimes, mobilize sovereign and co-investment capital, and issue fast-track visas for AI and data talent. Investors back ecosystems that combine regulatory clarity with skilled people and capital depth.
At Index Partners, we advise corporates, and investors on how to seize this opportunity through fundraising, JV structuring, and M&A in digital infrastructure and AI data centers.
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