Fueling the Future: How Equipment Finance Can Power the AI Revolution

Explosive demand for artificial intelligence (AI) and machine learning (ML) technologies has opened a new frontier in equipment finance. Consider the proliferation of data centers. They generate most of the computing power for AI and require specialized hardware, software, and power systems to operate. Beyond data centers, AI is transforming the equipment needs of healthcare, retail, manufacturing, and other industries. It is even inspiring the development of new categories of assets. 

“AI infrastructure is poised to reshape entire industries,” writes Valerie L. Gerard, co-CEO of The Alta Group, in an article in the latest edition of The Monitor. “For equipment finance companies, this presents a significant opportunity to fund the technologies that will drive the global economy.”

Leasing and financing models are attractive options as companies investing in digital infrastructure seek scalable funding solutions. To help equipment finance companies capitalize on this trend, Gerard’s article offers detailed insights into digital infrastructure needs, financing opportunities, and potential risks. She discusses spending growth, specific equipment required for AI, financing options, and companies currently active in the market.  

Read the article  

Digital Infrastructure Spending 

Gerard cites several data sources that have documented significant growth in digital infrastructure spending. Estimates from the International Data Center (IDC) Worldwide Semiannual Artificial Intelligence Infrastructure Tracker, for example, suggest spending on computer and storage hardware for AI initiatives increased 97% year-over-year in the first half of 2024, to $47.4 billion, and could exceed $200 billion by 2028. 

Funding Opportunities 

“Data centers are the ‘factories’ of AI production. They are the physical spaces where the vast computing power required by AI workloads lives. Growth in AI is significantly increasing demand for modern data centers with enhanced energy efficiency and high-capacity processing capabilities, creating opportunity for equipment leasing companies,” Gerard writes. 

Data centers require liquid cooling systems, energy-efficient infrastructure, scalable storage, and networking equipment, all of which can be financed. Lease-to-own agreements can be suitable options for funding backup power systems, for example, just as leasing agreements are conducive for financing distributed cloud storage and other high-capacity storage systems. 

Financing opportunities are also available through vertical industries investing heavily in AI technology. In retail and logistics, leasing or consumption-based models are useful for financing the specialized hardware required for AI applications in inventory management, demand forecasting, and route optimization.  

Other verticals leaning into AI include:  

• Healthcare, where equipment finance solutions can alleviate the costs of acquiring AI-driven diagnostic and medical imaging equipment. 

• Finance, where leases can fund the computer infrastructure necessary for AI fraud detection, credit scoring, and algorithmic trading. 

• Manufacturing, for financing the sensors, automation equipment, and AI platforms needed for predictive maintenance and robotics.  

Companies Financing AI 

Gerard’s article provides six examples of equipment finance companies already financing infrastructure for data centers or AI technology. They are DLL, Cisco Capital, Siemens Financial Services, Wells Fargo Equipment Finance, Key Equipment Finance, and HPE Financial Services. All six provide traditional leasing and financing options and some, including HPE and Cisco Capital, also have subscription- and consumption-based models. 

“By offering customized payment options, financing for AI data centers and subscription-based AI hardware and software models, equipment finance firms can position themselves as key enablers of AI-driven transformation,” Gerard notes. “The demand for AI  infrastructure will continue to grow, and those financing companies that adapt to this rapidly evolving market will stand to benefit the most.” 

Partner with Alta to Seize the AI Moment 

As digital infrastructure continues to reshape the economy, your ability to act quickly and strategically will define your success. The Alta Group brings decades of specialized expertise in equipment finance to help you evaluate market opportunities, assess risk, structure innovative funding models, and enter new verticals with confidence. Whether you’re exploring this space for the first time or scaling your existing AI-related financing programs, Alta’s advisors are ready to help you navigate this transformative era. Let’s talk about how we can support your growth.