The AI Infrastructure Gold Rush: Why JLL and Palantir Are Leading the Charge

In the race to power the AI revolution, two companies stand out as unsung heroes: Jones Lang LaSalle (JLL) and Palantir (PLTR). While tech giants dominate headlines, these firms are quietly capitalizing on the $1.4 trillion addressable market for AI-driven infrastructure, offering investors a blend of steady growth and underappreciated valuations. Let's dissect why they're poised to thrive—and how to profit from their ascent.

The AI Infrastructure Boom: Drivers and Challenges

The AI revolution is built on data center infrastructure, which now accounts for 2% of global electricity use and is projected to double by 2028. Key drivers include:
- GPU-Driven Power Demands: NVIDIA's latest AI chips consume 300% more power than prior generations, pushing rack densities to 130 kW.
- Liquid Cooling Necessity: Over 70% of new data centers now use hybrid cooling systems, with immersion cooling (still niche) targeting ultra-high-density racks.
- Regulatory Pressures: Governments like Ireland and Singapore are tightening grid access to prioritize sustainability, favoring firms with forward-thinking energy strategies.

This boom is creating winners and losers. Overhyped cloud giants face margin squeezes, while niche players like JLL and Palantir are owning the physical and analytical layers of this ecosystem.

A sprawling facility with server racks, liquid cooling towers, and renewable energy sources like solar panels, symbolizing the intersection of cutting-edge tech and sustainable infrastructure.

Jones Lang LaSalle (JLL): The Real Estate Powerhouse

As the largest data center real estate advisor, JLL is uniquely positioned to capitalize on the $170 billion in annual data center financing needed globally. Here's why it's a buy:

1. Data Center Demand and Financing

• JLL's Global Data Center Outlook 2025 highlights that 10 GW of new projects will break ground this year, driven by AI's insatiable appetite for compute power.
• The firm's $170 billion financing pipeline includes partnerships with utilities like Talen Energy and Lancium, which are building gas-fired power plants to fuel hyperscale campuses.

2. Regulatory and Environmental Adaptations

• JLL is leading the shift to small modular reactors (SMRs) and adaptive reuse of stranded power capacity, enabling clients to meet green mandates while cutting costs.
• Its "power-first" site selection strategy—prioritizing proximity to grids over cost—ensures projects avoid multi-year delays.

3. Financial Metrics and Valuation

• JLL trades at 12x forward EV/EBITDA, a discount to peers like Equinix (22x).
• Its $1.1 billion in free cash flow (2024) and 10% operating margins reflect scalable operations.
• Margin of Safety: Even a 20% decline in data center demand would leave JLL's valuation intact, unlike speculative cloud plays.

Palantir (PLTR): AI as a Service for Critical Sectors

Palantir's AI Platform (AIP) is the unsung hero of enterprise AI, offering clients autonomous decision-making without the need for in-house talent. Key advantages:

1. Government and Defense Contracts

• A $799.8 million DoD contract and NATO's MSS NATO system underscore Palantir's dominance in high-stakes domains.
• Classified projects like TITAN (a joint DoD initiative) lock in recurring revenue streams.

2. Enterprise AI Adoption

• Commercial revenue surged 71% YoY (Q1 2025) as clients like Walgreens and AIG deploy AI workflows.
• AIP bootcamps reduce implementation time, enabling clients to go from zero to production in months.

3. Financial Performance and Growth Prospects

• 2024 revenue hit $2.87 billion (+28.79% YoY), with net income surging 120% to $462 million.
• Valuation Debate: While its trailing P/E of 575x seems high, a 30.87% revenue CAGR and 40%+ EPS growth justify it.

4. Margin of Safety

• Free cash flow of $1.14 billion (2024) and low debt provide a cushion against economic downturns.
• Unlike overhyped AI stocks, Palantir's $4.5 billion cash hoard and diversified client base (defense, healthcare, finance) reduce execution risk.

Valuation Opportunities and Investment Considerations

Why JLL and Palantir Over Overhyped Peers?

• JLL: A 12x EV/EBITDA multiple vs. 22x for Equinix, plus a 2.6% dividend yield, offers a defensive moat.
• Palantir: A $575 million net cash position and $1 billion in free cash flow provide a margin of safety compared to unprofitable AI startups.

Risks to Monitor

• JLL: Power grid delays or shifts to remote work reducing colocation demand.
• Palantir: Federal budget cuts or regulatory scrutiny of defense contracts.

Investment Thesis

• Buy JLL for exposure to the physical infrastructure boom, with a $100 price target (current: ~$65).
• Buy Palantir for its AI platform dominance, targeting $30 (current: ~$20).

Conclusion

The AI revolution isn't just about algorithms—it's about the infrastructure and analytics that make them possible. JLL and Palantir are the unsung champions of this era: one building the physical backbone, the other providing the analytical brain. With undervalued multiples, tangible contracts, and sustainable cash flows, they offer investors a way to profit from AI's rise without overpaying for hype.

As the data center boom accelerates, these two are the gold rush's real winners—dig in now before the rush becomes a stampede.