[Edaily Marketin Reporter Soyoung Park ] As demand for artificial intelligence (AI) data centers grows, securing a stable power supply is emerging as a key challenge. In response to this trend, the domestic alternative investment industry is also shifting its investment strategy toward energy and climate tech. Notably, private equity fund (PEF) managers and venture capital (VC) firms are now targeting different sectors, drawing attention.

According to the domestic investment banking (IB) industry on the 2nd, the alternative investment market is accelerating its pace in energy-related investments to keep pace with the demand for AI data centers. In the past, policy and ESG were the primary growth drivers. Recently, however, these firms have been using the increased power demand driven by the spread of AI—and the resulting actual demand and profitability—as key criteria for investment decisions.

However, the investment focus of private equity (PEF) managers and venture capital (VC) firms presents a markedly different picture. This year, PE firms are concentrating their capital on physical infrastructure and platforms expected to generate long-term cash flows and asset value. This includes investing in power plants, energy storage systems (ESS), and data centers, as well as pursuing mergers and acquisitions (M&A) transactions.

For example, last month, SKTelecom decided to spin off SK Broadband’s data center and submarine cable businesses into a new entity called SK Horizon. At the same time, SK Horizon secured an investment in the 3 trillion won range from a consortium comprising KKR, IMM Investment, and StoneBridge Capital.

Earlier, in July, SK(034730)announced that it would partner with KKR to launch “HoldCo” (tentative name), South Korea’s largest renewable energy company. KKR will hold a 51% stake in the merged entity, while SK will hold 49%. Through this move, SK is reorganizing its renewable energy businesses, which were previously scattered across various affiliates. The strategy also involves combining strategic investment capital to build a business structure capable of responding to rapidly growing energy demand.

Venture capital firms are increasingly investing in technology companies that enhance efficiency and stability in power storage and management, such as next-generation batteries and battery management systems (BMS). For example, Cosmos Lab, a non-lithium battery cell company, successfully secured investment in a Series A round worth 22 billion won last August. Smilegate Investment and others participated in the round.

In addition, Anabatic Semi, a semiconductor startup specializing in battery management systems (BMS), secured 15 billion won in Series B funding. Existing investors—Smilegate Investment, Mirae Asset Venture Investment Co., Ltd., and JB Investment—participated in this follow-on round. New investors included IBK IndustrialBANKOFKOREA, IM CO., LTD, and ECOPRO CO., LTD. This indicates that the scope of VC investment has expanded beyond battery cells to include semiconductor technologies that enhance the efficiency and stability of energy storage systems (ESS).

An industry insider from the investment banking sector stated, “As the AI industry grows, interest in AI data centers, power grids, ESS, and related new materials has significantly increased in the semiconductor and battery sectors as well,” adding, “Not only private capital but also CVCs affiliated with major domestic conglomerates are actively seeking out relevant companies to identify new business opportunities to integrate into their core operations.”