Goldman Sachs restructures TMT group for AI, digital infra deals

Goldman Sachs is restructuring its technology, media, and telecom (TMT) investment banking group to focus more on digital infrastructure and AI-related deals, according to an internal memo.

The bank will merge its telecom and “CoreTech” teams into a new global infrastructure technology sector, led by partners Yasmine Coupal and Jason Tofsky.

Kyle Jessen will head infrastructure technology M&A within this group and continue to oversee semiconductor coverage.

Goldman is also creating a global internet and media sector, co-headed by Brandon Watkins and Alekhya Uppalapati.

A spokesperson confirmed these changes, which follow shifting trends in technology and media dealmaking.

🔗 Source: Reuters

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Implications, context, and why it matters.

Goldman’s TMT overhaul eyes digital infrastructure with uneven 2024 rankings

Goldman Sachs kept its M&A lead in 2024, extending a run since 2019 1. Debt capital markets ranked 7th in 2024 after 4th in 2021–2022 and 8th in 2023 behind Bank of America and Citi 2. Digital infrastructure relies on heavy debt, so universal banks hold an edge (full-service banks that combine large balance-sheet lending with investment banking).
OpenAI and Oracle plan the Stargate program 3. It is a proposed ultra-large AI data center with an initial site near Abilene, Texas, that targets 4.5 GW with a $100 billion cost 3. Vantage Data Centers plans $22 billion in debt for a 1.4 GW Texas campus from JPMorgan and Mitsubishi UFJ Financial Group (MUFG) 3. Goldman needs stronger debt underwriting to compete for these deals.

Semiconductor and data center operators can time 2025–2026 sales

Meta’s 4 million square foot Louisiana site is under construction with completion set for 2030 3. Amazon’s Pennsylvania AI sites total $20 billion and sit in permitting 3. QTS Realty Trust plans a $10 billion Cedar Rapids campus, while Compass Datacenters starts a 320 megawatt Mississippi project in late 2025 4 3.
Announced projects total $190 billion with clusters in Texas, Ohio, Pennsylvania 3. Vantage’s Texas build needs ultra high-density racks rated for 250 kW plus loads with liquid cooling 3. Microsoft’s Wisconsin site uses zero-water evaporation cooling 3. Builders across advanced thermal and power distribution plus modular construction can match roadmaps to these specs, timelines.