Where the smart money is going: AI infrastructure and the new battleground for value
In Silicon Valley, AI-first startups are raising $100 million seed rounds in under an hour. In contrast, Australian founders are navigating a more cautious capital environment. The divergence is not just about geography. It reflects a deeper shift in how and where value is being created.
The most strategic capital is now flowing into the infrastructure that powers AI. This includes data centres, energy systems and the physical and digital foundations that enable scale. For SME owners, this shift presents a timely opportunity to rethink how their business fits into the broader value chain.
At Morgan Shaw Advisory, we believe that understanding this shift is essential for any business preparing for growth, capital raising or exit. Our EBITDA+ SIX STEPS TO SUCCESS™ framework helps owners identify and unlock value in areas that traditional metrics often overlook.
Why this matters now
The AI boom is no longer confined to software. It is driving demand for compute power, energy efficiency and infrastructure scale. The recent announcement by OpenAI and Broadcom to deliver 10GW of AI data centre capacity by 2029 is a clear signal that the next wave of value will be built on infrastructure.
In Australia, this trend is unfolding differently. While valuations for AI-first companies are rising, the most strategic capital is targeting enabling technologies. This includes energy optimisation, data infrastructure and the logistics that support AI deployment.
For SME owners, this means that value is increasingly being measured by how a business enables or supports this infrastructure shift. Businesses that can position themselves as enablers of AI, even indirectly, are likely to attract more interest and command stronger valuations.
What this means for SME owners and acquirers
This shift in capital allocation has implications for a wide range of businesses:
Founders preparing for exit should consider how their business supports or benefits from AI infrastructure. This may involve repositioning the business or highlighting capabilities that were previously seen as operational rather than strategic.
Buyers and investors should look beyond traditional AI plays. The most attractive opportunities may lie in businesses that provide the tools, systems or services that make AI possible.
Operators in traditional sectors such as energy, logistics and industrial services may find themselves newly relevant. These sectors are being revalued through the lens of AI enablement.
The infrastructure thesis: three drivers of value
Compute is the new constraint
AI models require significant compute power. This is driving demand for high-density data centres, custom silicon and energy-efficient infrastructure. Businesses that support or supply these areas are becoming more valuable.
Energy is the new differentiator
AI’s energy footprint is substantial. Investors are now focused on businesses that can optimise energy use, integrate renewables or provide scalable energy solutions. This includes everything from smart grid technology to energy-as-a-service models.
Enablers are the new winners
Just as the internet era rewarded those who built the rails, the AI era is rewarding those who enable scale. This includes connectivity providers, data infrastructure platforms and physical infrastructure businesses with AI-aligned assets.
How MSA helps you capitalise
At Morgan Shaw Advisory, we help SME owners unlock hidden value by aligning their business with where the market is heading. Our proprietary EBITDA+ SIX STEPS TO SUCCESS™ framework is designed to:
Identify strategic value drivers beyond traditional financial metrics
Position your business as a critical enabler in the AI economy
Prepare for a premium exit by aligning with buyer priorities
As outlined in our guide Unlocking maximum business value, the key to a successful sale is not just strong performance. It is about creating a compelling opportunity that buyers cannot ignore.
Five questions to ask yourself
Does my business enable or benefit from the growth of AI infrastructure?
Can I reposition my offering to align with energy, data or compute trends?
Am I solving a problem that will become more important in the next five years?
Have I mapped my buyer universe to include infrastructure-focused investors?
Am I prepared to articulate this value clearly in a sale or capital raise?
Let’s talk about your next move
Whether you are preparing to sell, raise capital or reposition your business, MSA can help you get Game Ready. Our team specialises in helping SME owners unlock value, navigate complex transactions and exit on their terms.
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