Infrastructure Investor’s 2025 Digital report finds AI generating a wealth of opportunities
Accelerated adoption of artificial intelligence is revolutionising digital infrastructure, from data centres to fibre to towercos. While AI itself is not new, many of its applications are, and demand for data centres is rocketing as providers look to support those applications. Thankfully, while AI is causing this increased demand, it may also be helpful in managing it, making businesses and assets more efficient. AI’s rapid development really does herald a new era. The future is here.
Demand for digital infrastructure shows no sign of slowing
The emergence of AI catalyses hyperscale appetite, with the need for data centres set to triple by the end of the decade.
DeepSeek makes a splash
While the immediate market reaction was panic, the breakthrough AI model poses plenty of investment opportunities, as well as threats.
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Accelerated adoption of artificial intelligence is revolutionising digital infrastructure, from data centres to fibre to towercos. While AI itself is not new, many of its applications are, and demand for data centres is rocketing as providers look to support those applications. Thankfully, while AI is causing this increased demand, it may also be helpful in managing it, making businesses and assets more efficient. AI’s rapid development really does herald a new era. The future is here.
Modern problems require modern solutions
AI is turbocharging demand for digital infrastructure. It is also an essential tool for managing this exponential growth.
Investing in broadband in the right areas
Investment in broadband connectivity remains inadequate to deliver the many economic and social benefits that internet access can deliver. Public and private sector alignment could change that.
A global grid upgrade is mission-critical
The energy transition will put considerable demands on grids. Christopher Walker examines the myriad ways investors are addressing them.
Ardian: The future of telecoms is open access
Neutral host platforms represent the future for digital infrastructure, say Gonzague Boutry, managing director, digital infrastructure, and Rosario Mazza, head of infrastructure, Italy, and senior managing director at Ardian
Old approaches to new digital assets
Although digital assets can sometimes seem very different to traditional ones, existing methods for finding fair value remain largely relevant.
InfraVia: Pursuing full fibre for all
The fibre rollout in France and other European countries may be nearing completion, but there are still compelling investment opportunities to be found, say InfraVia Capital Partners’ Coralie Durbec and Olivier Raugel of portfolio company IFT.
Is 6G a step too far?
It may sound exciting to move from 5G to 6G in the digital world, but the opportunities and investment possibilities may not be worth it, writes Joel Kranc.
PATRIZIA: The smart cities opportunity
Bringing together technology, infrastructure and real estate, the smart cities trend is one to watch, says Jean-François Willame, operating partner at PATRIZIA.
AIIB: Bridging the digital divide
Financing for technology-enabled infrastructure is crucial to ensure equitable and sustainable economic development, says Danny Alexander, vice-president for policy and strategy at the Asian Infrastructure Investment Bank.
EdR: Structuring smarter digital plays
Building a well-balanced allocation raises a unique set of challenges and opportunities, says Edmond de Rothschild’s Jean-Francis Dusch.
3i: Riding the digital growth curve
Even accounting for recent blips in some markets, digital infrastructure continues to create substantial investment opportunities, explains 3i’s Oscar Tylegård.
Transforming traditional infrastructure
Digital transformation is often associated with data centres and internet connectivity, but innovative applications are in use throughout the broader sectors of the asset class.
Palistar explains the capital challenges in digital
Huge growth in the sector and a changing interest rate landscape are creating outsized demand for capital and changing sector dynamics, says Goncalo Bernardo, investment partner at Palistar Capital.
Real estate at the gates
Investors from other markets clamouring for growth are drawn to data centres, which should be able to support all comers.
Partners Group: Equipping the AI boom
An explosion in the adoption of generative AI is changing both the scale and nature of data centre demand, says Henk van Duijnhoven, managing director in Partners Group’s infrastructure Americas team.
Big Tech leads charge for green power
Hyperscalers are playing a leading role in the drive to reduce the conspicuous carbon footprint of the data centre industry.
Making haste, not e-waste
Recycling and refurbishing electronics is gaining investor attention as throwaway culture takes an environmental and financial toll.
CIM: The new data centre dynamics
Challenges around rising demand for data centres are being exacerbated by planning and siting issues. But investing in new technologies could mitigate these, says CIM Group’s David Blackford.
Digital infrastructure: On the minds of LPs
Some of the infrastructure world’s biggest institutional investors share their views on the bright spots and hurdles ahead for digital infrastructure.
Quest for digital talent gathers momentum
Institutional capital is readily available for investments in the rapidly expanding digital infrastructure industry, but finding the right people is a challenge.
DIF: North American mid-market steals the show
Surging consumer demand for data in tertiary markets, as well as unequal access to modern technologies, is driving investor appetite, says DIF Capital Partners’ Kanan Joshi.
Regulators turn their gaze to data centres
We investigate the most pressing regulatory trends concerning data centre investors.
Vauban: A technology-enabled transition
Digital assets face the energy transition challenge, but are also key enablers for that transition across sectors, explains Vauban’s Elie Nammar.
Demand for data centres, fibre-optic broadband, 5G mobile and other assets continues to grow in both developed and emerging markets. The outlook remains bright in most respects for the digital infrastructure sector, but there is no doubt there are challenges ahead. Infrastructure Investor’s latest Digital report reveals the strides that have been taken and the innovations that have been left behind.
The lowdown: Digital infra seeks to ride out the storm
The outlook remains bright in most respects for the digital infrastructure sector.
Resource aware digital infra
The growth of AI is likely to accelerate data centre demand, but users and communities want sustainable solutions, according to Qilan Tang and David Blackford, CIM Group managing directors.
Meeting digital demand in emerging markets
The pressing need for greater digital infrastructure capacity in emerging markets presents compelling opportunities, according to Mauricio Giusti and Adrian Mucalov of Actis.
3i on hunting for value
Partnering with the right management teams is important to ensure companies capture the full potential of a growth market, says 3i’s Oscar Tylegård.
Digital infrastructure: The shape of things to come
Digitalisation is transforming entire sectors, and infrastructure is no exception.
The rise and rise of the Nordic data centre industry
We head to Iceland to discover why the Nordics are fast emerging as a hub for data storage infrastructure.
Palistar: Building the future’s wireless network
Palistar Capital’s Omar Jaffrey says we are doing more with mobile data, making digital infrastructure a uniquely attractive asset class.
Can 5G close the digital divide?
Emerging markets risk falling further behind without investment in 5G infrastructure.
Edmond de Rothschild: Structuring digital infra debt for social impact
Digitalisation is part of a wider plan for a greener planet and a better world, says Edmond de Rothschild’s Jean-Francis Dusch.
Breaking down data centres
Two decades on from the start of the market, not all data centres are created equal.
Vauban on standing the test of time
Developing long-term partnerships while taking care of all stakeholders is a lasting model, according to Vauban’s Elie Nammar.
Sorting through the AI hype
Despite the excitement being generated by AI tools such as ChatGPT, some degree of scepticism will serve investors well.
Infracapital on connecting to a digital future
Next generation connectivity networks are vital to the transformation to a fully digitalised economy, says Infracapital’s James Harraway
Cracking the smart building code
Companies wiring structures to be smart seek to integrate as many functions as possible into a mobile interface.
Ardian: Digital infrastructure is a tale of two continents
Europe and the US are at very different points in the evolution of their digital infrastructure markets but both offer enticing opportunities, say Ardian’s Gonzague Boutry and Michael Obhof
Investment in digital infrastructure shows no sign of slowing
The macroeconomic environment may be making debt financing for digital infrastructure projects more challenging, but opportunities still abound for investors.
Antin: Digital infrastructure is a shifting space
Digital infrastructure opportunities are continually evolving and are being driven by the ever-increasing flow of data, says Antin Infrastructure’s Maximilian Lindner
Technology’s role in making healthcare fit for purpose
Amid calls for healthcare infrastructure to adapt to a changing world, new technologies are looking to drive the digital revolution, writes Christopher Walker.
PATRIZIA: Digital infrastructure is more than just a gadget
Driven by efficiency, productivity and sustainability gains, digital infrastructure will increasingly be viewed as a way of delivering essential services, says PATRIZIA’s Matteo Andreoletti
Satellite internet: Ready for take-off?
Can satellite internet become the final frontier for infrastructure funds?
Partners Group on scaling sustainably
Partners Group looks to expand the asset bases of data centre companies using sources of low-carbon energy, according to two of its managing directors
Preparing for the next generation of infrastructure
A new set of use cases and technologies are poised to emerge but is the infrastructure industry ready to embrace them?
AIIB: Digital infra is the backbone of sustainable development
Irene Kim, Shi Hao Zijdemans and Ivan Rossignol from AIIB explain the economic and social impact of digital infrastructure.
Digital Alpha: Infrastructure at the cutting edge
From artificial intelligence to an emerging ‘fog layer’, the digital infrastructure space is stronger than ever, says Digital Alpha’s Rick Shrotri.
The Internet of Things, and the environment of seamless cloud connectivity that it represents, will not be possible without the continued rollout of 5G, which requires vast network capacity improvements, denser networks and more data centres at the ‘edge’. Technological progress aside, however, and digital infrastructure investors also have a significant opportunity to bridge the social divide – creating value in more ways than one.
Connecting to a digital future
After a blockbuster 12 months for digital infrastructure, the opportunities keep coming thick and fast.
Q&A: GCM Grosvenor’s Ravi Parekh
An execution-minded management team and deep stakeholder network are critical to success in digital infrastructure, says GCM Grosvenor’s Ravi Parekh.
Antin: Rich pickings in digital
Fibre and data centre opportunities abound in the US, even before the pledged capital from Biden’s infrastructure bill starts to flow, says senior partner and head of Antin’s New York office, Kevin Genieser.
Cultivating digital hygiene
The growing cyber-threat means IT safety has moved up the priority list for infrastructure asset managers.
Powering up the charts: Digital infra’s growing share of capital
With sector-specific fundraising on the rise and more funds adding telecoms to their remit, digital has carved out a considerable place for itself in the market.
Digital Alpha Advisors on sharing the digital rewards
Innovative structuring means investors can participate in the future upside of the revenue-generating digital infrastructure they deploy, says Rick Shrotri, founder and managing partner of Digital Alpha Advisors.
Thinking smart: The rise of the ‘Smart City’
As planners reimagine how people live, work and move around our cities, we look at why the smart city concept represents the confluence of digital infrastructure and technology investment.
Actis: Digital infrastructure is the great leveller
Digital infrastructure has the power to either address or exacerbate global inequality, says Actis’ director of sustainability James Magor and global head of data centre operations Dalmar Sheikh.
Seeking a slice of the data centre pie
As the world continues to digitise, and people consume ever more data, we look at the evolution of an asset class that appeals to investors in both real estate and infrastructure.
Vauban Infrastructure Partners: What 5G means for digital infrastructure
Deployment in Europe is picking up pace; as use cases develop, 5G will have significant implications across towercos, fibrecos and data centres, says Elie Nammar, senior director at Vauban Infrastructure Partners.
Making a pact on climate neutrality
In the age of digital reliance, the environmental impact of data centres has come under scrutiny. Asset owners are now acknowledging their growing role in the decarbonisation journey.
CIM Group: Charting a course to greener data centres
Tackling carbon emissions and water consumption combines responsible investment with good business sense, says CIM Group principal Jennifer Gandin.
Looming digital skills shortage poses problems
Educational reforms are needed to provide the skilled digital infrastructure workforce of the future.
Edmond de Rothschild on the digital debt opportunity
A range of lending propositions exist across project financing, acquisition finance and refinancings, says Jean-Francis Dusch, BRIDGE CIO and global head of infrastructure, real assets and structured finance, and UK CEO at Edmond de Rothschild.
Bridging the digital divide
Investments in digital infrastructure have the potential to transform low-income communities.
Ardian on why we are not facing another telecoms bubble
Valuations may be high, but they are supported by real demand and real growth prospects, say Ardian managing directors Michael Obhof and Gonzague Boutry.
It’s a misnomer to think the covid crisis of the past 15 months is the sole reason for digital’s appeal to private capital. The digital transformation was well underway beforehand. But the pandemic has accelerated it and shone a bright light on how essential it is to be digitally connected whether you are in a central business district or in a remote rural location – it has become the fourth utility.
Consider this statistic. The GSMA estimates the number of mobile internet users will reach 5 billion by 2025, up from 3.8 billion in 2019. This requires cash. The EU Commission, for instance, estimates that the level of broadband to the home connectivity will require investment of €65 billion to €100 billion.
So, it’s hardly surprising that, amid covid lockdowns and, post-pandemic, remote working seemingly set to remain a permanent feature, private capital’s focus on digital infra has sharpened even further.
Sector focus: Data centres
Dedicated data centre funds gloss over whether the sector is real estate or infrastructure and LPs are committing plenty of capital.
Sector focus: Fibre-to-the-home
The success of FTTH depends on a favourable regulatory environment but some investors are not convinced it justifies the risks.
Sector focus: Telecom cell towers
The long-term outlook for telecom towers looked promising before covid-19 but the virus pushed demand to an unprecedented peak.
Antin on private capital’s transformational role
We are in the middle of a once-in-a-generation opportunity to update the world’s telecommunications infrastructure, says Antin partner Simon Söder
Vauban on why digital infra’s star is rising
The popularity of digital infrastructure is soaring, but there’s no pricing bubble on the horizon, says Vauban Infrastructure Partners chief executive Gwenola Chambon
Solving the urban-rural connectivity gap
The sudden move to remote working during the pandemic has underlined the need for greater digital infrastructure in rural areas.
Ardian on why standing still in digital infra destroys value
A proactive and agile approach to digital transformation is critical for all infrastructure assets, say Ardian director Pauline Thomson, CIO of infrastructure Marion Calcine and head of infrastructure Italy Rosario Mazza
Digital infra is the fourth utility
Network densification and upgrades are key to meeting fast-growing data consumption globally, says Partners Group’s Andrew Kwok.
Digital Colony on opportunities at the edge
New working practices are driving opportunities in 5G infrastructure, fibre networks, and edge computing, say Digital Colony’s chief investment officer Ben Jenkins and chief executive Marc Ganzi
Digital’s sustainable footprint
With more investors now making a play for digital infra, how compatible are these assets with the sector’s ESG commitments?
Are data centres infra or real estate?
A debate has been shaping up as to whether data centres are infrastructure or a type of warehouse within the real estate sector.
Instar: The future of fibre
Instar’s Jack Bittan chats to Byron Cantrall, CEO of LS Networks, and Marc Hudson, co-founder and former CEO of Rocket Fiber, about the rapidly growing opportunity in the fibre sector
Edmond de Rothschild on deploying debt in digital infrastructure
Senior and high-yielding lending opportunities are growing rapidly, says Jean-Francis Dusch, BRIDGE CIO and global head of infrastructure, real assets and structured finance, and UK CEO at Edmond de Rothschild
Digital infrastructure has proven itself ‘the fourth utility’ as the covid-19 lockdown has prompted an explosion of videoconferencing for work and streaming for leisure. The infrastructure has been tested but is rising to the challenge and, in the process, underlining its mission-critical nature. As the world demands ever-greater connectivity, it will require ever-greater investment in the infrastructure that makes that happen.
Five key trends in digital infrastructure
Digital infrastructure was developing rapidly even before covid-19 forced the world into lockdown; now its importance is clear for all to see.
How digital infrastructure became ‘mission-critical’
Now, more than ever, digital infrastructure is vital for the world economy to grow. As a result, it represents a strong opportunity for investors, writes Joel Kranc.
Antin on the power of connectivity
Digital infrastructure is more essential than ever, says Simon Soder, partner at Antin Infrastructure Partners
Cube Infrastructure Managers: ‘Fibre is the fourth utility’
Fibre-to-the-home must be redefined as a basic necessity following the coronavirus pandemic, says Izzet Guney, managing director at Cube Infrastructure Managers
Digital Alpha on testing the resilience of digital infrastructure
As the spread of covid-19 continues to disrupt business as well as everyday life, Digital Alpha managing partner Rick Shrotri tells us what the global slowdown means for digital infrastructure
Coronavirus increases focus on digital
There are long-term opportunities, despite the short-term challenges.
Digital Colony: Covid-19 and beyond for digital infrastructure
The rapid development of digital infrastructure is mission-critical for the world’s economies as they battle a global pandemic and prepare for the proliferation of 5G, says Marc Ganzi, Digital Colony CEO and CEO-elect of Colony Capital
InstarAGF on essential infrastructure in the age of social distancing
As we face covid-19, there is evident need for greater investment in digital infrastructure, a sector uniquely positioned to provide increasingly essential services, say Jack Bittan, partner, and Casey Lanza, principal, at InstarAGF
Our first digital infrastructure report focuses on the sector’s transition from what was perceived as a risky venture-capital play to what is now a burgeoning institutional asset class, with opportunities and innovation being driven by an explosion in data demand.
Three top trends
Digital infrastructure is a relatively new sector and is developing rapidly, with investment pouring into data centres, fibre and towers.
How digital became integral
Digital infrastructure is already mainstream and keeps growing in importance.
Five things we learnt in Berlin
Digital infrastructure was on participants’ minds at the Infrastructure Investor Global Summit in Berlin in...
From then to now
An overview of the milestones in the digital revolution, from 1947 to today, helps point the way to what’s next.
Building value, earning trust
Marc Ganzi, co-founder and CEO of Digital Bridge, on telecoms’ evolution from venture capital play to burgeoning institutional digital infrastructure asset class.
Investing for tomorrow’s needs, today
AMP Capital partner Matt Evans explains how investing in the systems that connect people, business and things can harness the growth and progress of our digital journey.
A great capacity to build
DIF partner Willem Jansonius discusses starting small, building scale and enhancing value in the global under-developed telecoms infrastructure sector.
Bridging the digital divide
Izzet Güney and Henri Piganeau, of Cube Infrastructure Managers’ Connecting Europe Broadband Fund, highlight the opportunity presented by fibre-optic rollout in European rural areas
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