Financial markets are currently navigating a landscape defined by geopolitical uncertainty, yet they appear largely unfazed, as emphasized by Stephen Schwarzman, Chairman and CEO of Blackstone. Speaking during an interview with CNBC-TV18 at the World Economic Forum 2026 in Davos, Schwarzman noted that discussions among global investors are increasingly centered on structural economic forces rather than geopolitical tensions, which have proliferated from West Asia to Latin America. “There are more questions than answers,” he remarked, indicating that while geopolitical developments are rapid, they have had “surprisingly” little impact on market performance.
Schwarzman attributes this market resilience to the absence of resolutions to significant geopolitical issues that could materially affect economic outcomes. Instead, he contends that investors are focusing on robust growth drivers, particularly within the United States. Drawing comparisons to periods of global fragmentation, including the post-1945 era, Schwarzman emphasized that the current environment is fundamentally different. “It’s not quite 1945,” he stated, highlighting that economic forces are prevailing over geopolitical concerns.
At the core of this positive outlook is the swift adoption of artificial intelligence and the extensive investment in digital infrastructure. The U.S. economy experienced a notable growth rate of 4.3% in the last quarter, a remarkable achievement for a mature, high-income economy. “This has almost never happened in decades,” Schwarzman pointed out, adding that while India may achieve higher percentage growth due to its lower economic base, sustained growth above 4% is particularly unusual for the U.S.
Much of this economic momentum, Schwarzman explained, is propelled by hyperscalers—large technology firms investing heavily in data centers, social media, and AI capabilities. “Probably three-quarters of the growth in the United States is from the building of data centers,” he said, underscoring their central role in the current economic expansion.
However, this surge in data center construction is creating a pressing challenge in another crucial sector: electricity. After nearly two decades of stagnant power demand, the U.S. is now facing a potential electricity shortfall as the scale of AI workloads and digital infrastructure continues to expand. “For data centers to keep being built, you need electricity,” Schwarzman stated, indicating that this necessity is setting the stage for significant enhancements to the power grid. Estimates suggest that electricity demand could rise by 5-6% annually, a sharp increase compared to the flat growth observed over the last two decades.
The implications are substantial, as the electric grid will require major investments for its expansion. “The whole electric grid is going to need massive expansion—50% type expansion at a minimum,” he projected, with some forecasts suggesting even higher requirements.
Blackstone, the world’s largest alternative asset manager, is strategically positioned to capitalize on these trends. Schwarzman revealed that Blackstone is both the largest builder and owner of data centers globally, while also making significant investments in the modernization and expansion of electricity infrastructure. “As investors, being in these two areas with increased concentration has turned out to be a simply wonderful outcome,” he remarked.
Beyond infrastructure, Schwarzman expressed optimism regarding the overall investment cycle. With interest rates declining in the U.S. and Europe, fundraising conditions are improving after a challenging period for private equity following the post-pandemic rate shock. Presently, Blackstone manages close to $1.3 trillion in assets, which includes around $500 billion in private credit, a sector that continues to grow robustly. Schwarzman noted that real estate, private equity, and credit are all entering a more favorable phase of the cycle.
Schwarzman’s insights elucidate why markets remain resilient in the face of geopolitical uncertainty. Investors appear to be banking on the AI-led transformation of the global economy, bolstered by unprecedented investment in data centers and power infrastructure. For now, fundamentals are prevailing over fears, with capital flowing toward the technologies and infrastructures shaping the next phase of economic growth.
As Blackstone reinforces its position in these burgeoning sectors, the landscape ahead looks promising, fueled by technological advancement and substantial infrastructure investment that may redefine economic paradigms.
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