Key Takeaways
- • Mullissa Willette, who helps oversee investment strategy at the California Public Employees' Retirement System (Calpers), the largest US public pension plan, says AI now poses a "stranded asset" risk to the fund's holdings.
- • Community pushback against data centers is causing permitting delays that Willette says can undermine the economics of AI data center projects.
- • Willette's comments, as reported by Bloomberg, flag that such delays could hit asset values and returns for pension investments tied to AI infrastructure.
Summary
A board member of the California Public Employees' Retirement System (Calpers), the largest public pension plan in the United States, has raised concerns about the fund's artificial intelligence investments, according to Bloomberg. Mullissa Willette, who helps oversee investment strategy at Calpers, said "There is a concern about stranded assets" as the growing backlash against data centers takes shape.
Willette argued that community opposition is producing permitting delays, and those delays can undermine the economics of AI data centers. In her view, the resulting slowdown could reduce the value of assets and weaken returns, which is the core reason the risk matters to a pension allocator.
The remarks highlight a tension facing institutional investors with exposure to AI infrastructure: demand for data center capacity is strong, but local regulatory and community resistance can extend development timelines and affect project returns. The primary source does not provide specific dollar figures for Calpers' AI holdings or details on particular projects, so the scope of the fund's exposure remains unquantified in this report.
Willette argued that community opposition is producing permitting delays, and those delays can undermine the economics of AI data centers. In her view, the resulting slowdown could reduce the value of assets and weaken returns, which is the core reason the risk matters to a pension allocator.
The remarks highlight a tension facing institutional investors with exposure to AI infrastructure: demand for data center capacity is strong, but local regulatory and community resistance can extend development timelines and affect project returns. The primary source does not provide specific dollar figures for Calpers' AI holdings or details on particular projects, so the scope of the fund's exposure remains unquantified in this report.
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