Davis Polk partner Brian Hirsch was quoted in Infralogic discussing infrastructure investing trends in 2025.

The article notes that financing banks have adapted real estate finance tools to digital infrastructure contexts. “Traditionally, real estate financing has had guarantees, completion guarantees, bad boy guarantees,” said Brian, referring to clauses that hold a borrower personally liable in a non-recourse loan if they engage in specified bad acts.

“Those were not normal in the infra world. Real estate historically is done through joint ventures, and few buildings are 100% owned by one owner. You’re starting to see that more in the data center space.”

Discussing the key risks, Brian notes, “Capital is one constraint, but labor and parts are the biggest constraint. If you need a generator, it’s going to take six months. There’s still a shortage but if you take [data center developers] at their word, then this is going to continue.”

“A lot of the low hanging fruit is gone. It is only getting harder to get deals done because now the easy sites have been gobbled up, and everybody’s aware of the value of what they have. The sites that are left are either harder to acquire or worth more,” Brian added.

“Going Stratospheric: Digital dominates infrastructure investing in 2025,” Infralogic (December 22, 2025) (subscription required)

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