: Argo is a leading mid-market asset manager with over $6 billion in high-quality infrastructure investments across 18 assets that provide essential services to their communities. Assets, such as utilities, renewable energy, digital infrastructure, and other long duration infrastructure assets.
Let’s start with Argo’s investment focus, why infrastructure assets? Jamie Dimon in his annual letter to JPMorgan shareholders devoted a significant amount of space to discussing infrastructure. Why now?
Jason Zibarras: There is an undeniable need for significant infrastructure investment, especially if you think about some of the megatrends driving demand/need and leading to increased power and network demands.
Jamie Dimon cited some compelling stats. These are long term strategic considerations.
The United States now invests – in total – only 0.55% of its GDP on infrastructure.
The OECD average is 0.81%, 0.55 versus .81 doesn’t seem like a big difference but that’s 30% less than the OECD average and China’s spend is 10x the US at 5.56%. Plus, they also get more value/asset in the ground for each dollar invested.
The US needs to allocate a lot more money on infrastructure, to meet policy objectives, particularly in the data / AI space.
CorpGov: That’s a good segue into TierPoint, the data center company that Argo manages for investors. As an investment how are you viewing the data center business opportunity overall?
Jason Zibarras: TierPoint is one of the most geographically diversified U.S. enterprise data center footprints, with dozens of world-class, cloud-ready data centers in 20 markets, connected by a coast-to-coast fiber network.
TierPoint is experiencing tremendous demand for enterprise and high-density services that are required for artificial intelligence and other compute-intensive, GPU-accelerated workloads.
This month we completed a new $500 million securitization which brings total new financing raises to $1.8 billion of IG paper.
We were able to secure investment grade financing at 120 basis points tighter than last year. Having strong demand for TierPoint’s paper shows investors’ confidence in the business model. Investors recognize the strong cash flow data centers generate and how resilient it is.
The additional capital we raised will propel future growth with a ready-to-go financing structure.
CorpGov: Data centers are dependent on the reliable flow and storage of energy; I know Argo is helping with that as well. Can you explain how Ice Energy is helping utilities manage their electricity load demand?
Jason Zibarras: Before I explain what Ice Energy does, I’ll need to put the power demand issue into context.
According to a recent S&P research paper, U.S. Power demand is forecast to increase by 2.5x in the next 15 years. Power grids are already facing bottlenecks and struggling to keep up with demand.
Addressing this problem is not easy. Adding generation and transmission capacity is an expensive and time-consuming process with many long-lead times.
Power generation often doesn’t line up with peak demand. Utilities and regulators are desperate for solutions that are deployable today to meet peak demand and enable more renewable/intermittent energy to be used regardless of when it is produced.
Ice Energy is a thermal energy storage company that provides a distributed grid-scale virtual power plant solutions for permanent load shifting, peak to off-peak, which helps utilities meet their resource adequacy requirements and ultimately saves consumers and businesses money, while improving their carbon footprint.
CorpGov: How does Ice Energy help manage power demand?
Jason Zibarras: Our Ice Bear line of products store energy by freezing and storing ice during cooler, off-peak hours. About 1/3 of grid energy in hotter parts of the US is used for space cooling.
During peak hours, it turns off energy-intensive AC compressors and uses the stored ice to provide cooling for up to 8 hours. This reduces the overall utility cost for our customers.
The timing difference in energy usage helps smooth out net load and solve impact of the mismatch in generation and demand.
CorpGov: How do customers save money?
Customers can’t change when they need air conditioning, but Ice Bear can shift electricity consumption to off-peak times when the rates are substantially cheaper. Customers can save 20 to 30% on their utility bills.
CorpGov: What’s the environmental impact of load-shifting using Ice Bear?
Jason Zibarras: That’s the beauty of Ice Bear – it has no environmental impact. The process is freezing and unfreezing the same volume of self-contained water, meaning it does not require additional water.
It has near zero carbon footprint; it is 100% made in the U.S.A. and does not require any rare earth minerals.
CorpGov: Argo has an interesting hydroelectric generation investment, tell me about that?
Jason Zibarras: Argo has a 50/50 partnership with Brookfield Asset Management where we co-own the Smoky Mountain hydro facilities located in east Tennessee and western North Carolina. It is a great asset that has a 10-year Power Purchase Agreement with the Tennessee Valley Authority. In addition, in Q4 of 2024 we completed an up-sized debt financing agreement.
In fact, one of the Smoky dams featured in a movie, with Harrison Ford and Tommy Lee Jones – the Fugitive where Harrison Ford jumps off the dam.
CorpGov: What’s your view of infrastructure as an asset class?
Jason Zibarras: I’m biased, but there is a tremendous amount of investment in infrastructure needed.
That’s not a unique view. Larry Fink in his annual letter to BlackRock shareholders cited a stunning statistic: by 2040, global demand for new infrastructure investment will be $68 trillion. BlackRock also bought Global Infrastructure Partners last year.
CorpGov: Before we conclude, are there any fun facts about yourself you’d like to share?
Jason Zibarras: Sure, I’ll share a fun fact.
I was an executive producer of the “The Kill Room”. World class cast – including Uma Thurman, Joe Manganiello and Samuel L. Jackson.
Memorable project, NY and Miami locations, and great people to work with, the daily production and filming was always fun, even a brief cameo.
CorpGov: That’s great, thanks for being here at Nasdaq Market Space.
Jason Zibarras: Thanks for having 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 investing. Argo invests in high-quality infrastructure businesses and assets that provide essential services to their communities over their long operational lives, including investments in utilities, renewable energy, digital infrastructure, and other long-duration infrastructure assets. Argo’s investment philosophy couples sound investment return with responsible and sustainable investing. As of January 2025, Argo manages over $6 billion in assets on behalf of its investor partners. For more information, visit www.argoip.com.
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