: Argo is a leading mid-sized marketing manager with over $6 billion in high-quality infrastructure investments across 18 assets, providing essential services to its community. Assets such as utilities, renewable energy, digital infrastructure and other long-lasting infrastructure assets.
Let's start with Argo's investment focus, why infrastructure assets? Jamie Dimon invested a lot of space to discuss infrastructure in an annual letter to shareholders of JPMorgan. Why now?
Jason Zibarras: There is no denying that a lot of infrastructure investment is required, especially if you consider some of the big trends driving demand/demand and lead to an increase in power and network demand.
Jamie Dimon cites some compelling statistics. These are long-term strategic considerations.
Now, the United States has invested a total of 0.55% of its GDP in infrastructure.
The OECD average is 0.81%, and 0.55 vs. 0.81 doesn't seem to be big, but it's 30% lower than the OECD average, with spending 10 times in China and 5.56% in the United States. Plus, they can get more value/assets in every dollar they invest.
The United States needs to allocate more money on infrastructure to achieve policy goals, especially in the data/AI space.
CorpGov: This is a great choice for Tierpoint, a data center company that manages investors. As an investment, how do you view the business opportunities in your data center overall?
Jason Zibarras: Tierpoint is one of the most diverse footprints of corporate data centers in the United States, connected by dozens of world-class, cloud data centers in 20 markets, from coast to coast fiber networks.
Tierpoint has huge demand for businesses and high-density services needed for AI and other compute-intensive GPUs to accelerate workloads.
This month, we completed a new $500 million securitization that will increase the brand new financing to $1.8 billion in IG paper.
Compared to last year, we were able to secure investment-grade financing at a basis point of 120 basis points. There is a huge demand for Tierpoint's paper, demonstrating investors' confidence in the business model. Investors recognize the strong cash flow data centers generate and its resilience.
The additional capital we raise will drive future growth through the instant financing structure.
CorpGov: Data centers depend on reliable traffic and energy storage; I know Argo is helping this too. Can you explain how ICE Energy can help utilities manage their power load needs?
Jason Zibarras: Before explaining the role of ICE Energy, I need to put the power demand problem in the environment.
According to a recent research paper by S&P, electricity demand in the United States is expected to increase by 2.5 times over the next 15 years. The power grid is already facing bottlenecks and is working hard to meet demand.
It is not easy to solve this problem. Increased generation and transmission capabilities is an expensive and time-consuming process and has many long-term time.
Power generation usually does not match peak demand. Utilities and regulators are eager to meet peak demands today’s deployable solutions and enable more renewable/intermittent energy to be used regardless of production.
Ice Energy is a thermal energy storage company that provides distributed grid-level virtual power plant solutions for permanent load transfer, peak-to-off-peak, which helps utilities meet their resource adequacy requirements and ultimately save money for consumers and businesses while improving their carbon footprint.
Corpgov:How does ICE Energy help manage power demand?
Jason Zibarras: Our Ice Bear Series stores energy by freezing and storing ice during coolers, off-peak hours. In the hotter part of the United States, about one-third of the grid energy is used for space cooling.
During peak hours, it shuts off the energy-intensive AC compressor and uses stored ice to provide up to 8 hours of cooling. This reduces the overall utility cost for customers.
Differences in timing of energy use help smooth out net loads and address the impact of mismatches in power generation and demand.
CorpGov: How do customers save money?
Customers cannot change when they need air conditioning, but when the price is cheaper, Ice Bear can transfer power consumption to off-peak hours. Customers can save 20% to 30% of utility bills.
CorpGov: What impact will the use of ice bears for load transfer have?
Jason Zibarras: This is the beauty of the ice bear - it has no environmental impact. The process is freezing and releasing the same amount of independent water, meaning it does not require additional water.
Its carbon footprint is close to zero; it is 100% made in the United States and does not require any rare earth minerals.
CorpGov: Argo has an interesting hydropower investment, tell me about it?
Jason Zibarras: Argo has a 50/50 partnership with Brookfield Asset Management, and we jointly own smoky mountain hydropower facilities located in East Tennessee and western North Carolina. It's a great asset, with a 10-year power purchase agreement with the Tennessee Valley Authority. Additionally, in the fourth quarter of 2024, we completed a massive debt financing agreement.
In fact, Harrison Ford and Tommy Lee Jones jumped off the dam along with Harrison Ford.
CorpGov: What is your infrastructure as an asset class?
Jason Zibarras: I am biased, but I need to invest heavily in infrastructure.
That's not a unique point of view. Larry Fink quoted an amazing statistic in his annual letter to Belek shareholders: global demand for new infrastructure investment will be $68 trillion by 2040. Blackrock also purchased global infrastructure partners last year.
Corpgov: Do you want to share interesting facts about yourself before we come to the conclusion?
Jason Zibarras: Of course, I will share an interesting fact.
I am the executive producer of "Kill Room". World-class actors - including Uma Thurman, Joe Manganiello and Samuel L. Jackson.
Memorable projects, locations in New York and Miami, and the good people who work with it, daily production and shooting are always fun, even brief cameos.
Corpgov: Great, thank you for coming here in the Nasdaq Market segment.
Jason Zibarras: Thank you for owning me.
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About Argo Infrastructure Partners
Argo Infrastructure Partners LP, founded by Jason Zibarras, is an independent fund manager with a long-term approach to infrastructure investment. Argo invests in high-quality infrastructure businesses and assets that provide the community with important services for long-term operational life, including investments in utilities, renewable energy, digital infrastructure, and other long-term infrastructure assets. Argo's investment philosophy: partner partner return on investment, responsible and sustainable investment. As of January 2025, Argo has managed more than $6 billion in assets on behalf of its investor partners. For more information, visit www.argoip.com.
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Nasdaq and Argo infrastructure partner Jason Zibarras first appeared on Corpgov in an interview on the status of infrastructure investment.
