A glitch in the system
Digital infrastructure and data centres are now key drivers of North American economic growth, with electricity demand surging as AI reshapes the sector. However, it’s not all rosy; connecting power is becoming a major bottleneck, pushing firms into secondary markets and risking conflicts with rural communities.
Add AI safety concerns and calls for its regulation, and investors are wondering if it was too good to be true.
Are data centres becoming too hot to handle?
With power constraints and political backlash curtailing growth, is it time for investors to get out of the market?
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PREVIOUS COVERAGE
After months of trade war rhetoric, investors at least seem to have largely stopped listening. Exemptions in the US-Mexico-Canada Agreement are protecting the bulk of cross-border trade, while markets have mostly calmed. Investors are looking for a route to commitments but the overall political picture is far from supportive.
The key trends in North America in 2025
Infrastructure investors navigate policy uncertainty as optimism remains high.
A whirlwind year for US energy transition investors
Policy volatility has had varying effects on infra managers in North America.
Quinbrook: A new era for US clean energy
Policy support may be waning, but fundamental economics are driving appetite for the energy transition regardless, says Quinbrook’s Giulia Siccardo.
The US seeks smart growth
An all-of-the-above approach will be needed to close the US’s infrastructure funding gap, but that doesn’t mean pouring capital into any project.
Ridgewood Infrastructure: Lower mid-market builds momentum
Demographic and onshoring trends are creating compelling investment propositions in North American infrastructure, say Ridgewood Infrastructure’s Michael Albrecht and Ross Posner.
Roundtable: Shaking up US infrastructure investing
The expansive One Big Beautiful Bill Act is impacting every sector, from power to transportation, creating challenges but also opportunities, according to our expert roundtable participants.
Mexico keeps an eye on the ball
The World Cup highlights the country’s infrastructure needs and opportunities, writes Geronimo Gutierreza, managing partner from BEEL Infrastructure.
GPs and LPs benefiting from a growth approach
Many investors are focusing on ‘growth’ in infrastructure due to structural trends and risks in other markets and sectors, writes Tiger Infrastructure Partners’ founder, Emil W Henry, Jr.
Ardian on air cargo logistics
The sector is attractive for infrastructure investors in North America, say Ardian’s Leonarda Orani and Stefano Mion.
On the minds of the infrastructure investors
Our panel reflects on a year of escalating US tariffs and policy reversal.
EnCap: Rising to the occasion
EnCap Investments’ Jim Hughes discusses why he’s not afraid of an unsubsidised US renewables market given power demand fundamentals.
Secondaries poised for blockbuster success
Infrastructure secondaries is set for a starring role as managers give their prized assets the red carpet treatment.
2024 is proving to be a crucial year for North American infrastructure investing. Mexico has already voted in a new president, and the US is up next. Voters will soon be faced with a choice between former president Donald Trump and Democrat vice-president Kamala Harris. No doubt there is some concern over political risk, but North America remains the leading destination for infrastructure investors. Opportunities abound, as this year’s report showcases.
Mexico seeks to capitalise on nearshoring bonanza
Despite some challenges, investors remain positive about nearshoring opportunities.
Clearing the gridlock in global grid investment
Soaring power demand is increasing the investment case for grid technology, writes Christopher Walker.
Hydrogen’s missing element
In the US, there is optimism that hydrogen could help the country shift towards net zero. However, market uncertainty still threatens the sector’s continued growth.
Is offshore energy getting a second wind?
Private equity has flocked to invest in US wind, despite many challenges. Christopher Walker explores whether this would survive potential political change.
Roundtable: Is America the land of opportunity?
Despite uncertainty around the future of the IRA, North America is continuing to deliver attractive infrastructure investment opportunities across the energy, digital and transport sectors, our roundtable participants tell Infrastructure Investor.
Capturing the potential of CCS
North America is leading the world on carbon capture and sequestration but questions around tax credits persist.
NextEnergy Capital on solar’s bright future
The rapid deployment of solar in North America will continue regardless of politics, predicts NextEnergy’s Michael Bonte-Friedheim.
The fortunes of fibre internet
Fibre is frequently referred to as the fourth utility. But spiralling costs and increasing competition are creating real challenges for fibre-to-the-home providers.
Ardian: In-building wireless gets a signal boost
With most cell phone use taking place inside, and dependable service within buildings elusive, ensuring property owners can provide wireless to tenants is a compelling investment thesis, says Ardian’s Michael Obhof.
Quinbrook: Tipping the balance of power
Opportunities abound to help decarbonise energy-intensive industries such as data centres and US electricity generation for managers with the right skillsets, says Quinbrook’s John Lucas.
Plugging into the smart city
The US is lagging behind with its less proactive government but decentralised innovation has its upside.
CVC DIF on a cross-cutting energy transition
Decarbonisation efforts are creating infrastructure opportunities across a range of sectors, say CVC DIF’s Vincent Liu and Ryan Gow.
Palistar Capital: Now is the ideal time to be a specialist digital investor
Strong macro themes and surging consumer demand for all things digital are fuelling a sharp rise in infrastructure investment, says Palistar Capital’s Omar Jaffrey.
A question of scale for electric vehicles
Political developments in the US could undermine investment, but the long-term trajectory remains positive.
CIM Group on private credit’s rising prominence
Credit provides greater flexibility and a more investor-friendly structure than you typically see with equity, says CIM Group’s Kyle Hatzes.
Ridgewood Infrastructure: The lower mid-market is primed for growth
From water utilities to renewables and reshoring, the lower mid-market is providing a plethora of opportunities to buy small and scale, says Ridgewood Infrastructure’s Ross Posner.
Partners Group on fuelling the net-zero transition
Embracing a spectrum of low-carbon fuels could be key to achieving long-term decarbonisation goals, say Partners Group’s Andre Burba and Matthew Lipton.
Is time running out for US LNG?
Global competition and domestic export pause do not necessarily signal the death knell for future LNG investment, writes Andrew Gallagher.
Igneo Infrastructure Partners: US infra plays the long game
Allocations will increase as funds seize opportunities to address the infrastructure deficit, say Igneo’s Michael Ryder and John Ma.
3i: Infra is key to economic prosperity
The presidential election is unlikely to disrupt the momentum behind US infrastructure investing, given the bipartisan support that the industry enjoys, says 3i managing partner and head of North American infrastructure, Rob Collins.
Canada touts new green tax credits
Major Canadian cleantech incentive averts investor drain to US but makes minor dent in carbon emissions.
North America has, for many years, been a preeminent infrastructure investment destination. Interest in the region has now accelerated driven by the US, on account of President Joe Biden’s $1 trillion infrastructure plan.
Combine that with the world’s most dynamic energy market, the energy transition and digital infrastructure mega-trends – as well as an LP community with plenty of room to grow their allocations to the asset class – and North America is likely to feature prominently in our coverage for many years to come.
Given those factors, we are expanding our coverage of the region and offer our readers the opportunity on this page to explore key stories, news analysis, opinion and features.
North American fundraising sees a decline in H1
Investors are more optimistic than recent infrastructure fundraising figures might suggest.
Igneo on the importance of proactive asset management
Why Igneo’s John Ma and Michael Ryder believe a hands-on approach to guiding infrastructure portfolio companies is needed.
Partners Group on plugging digital infrastructure into AI
Consumer and enterprise demand for data and generative AI points to a bullish future for US data centre operators, say Partners Group’s Fentress Boyse and Morgan Jones.
Offshore wind is a double-edged sword for investors
While offshore wind investment is needed for the energy transition, it is still in its infancy, writes Joel Kranc, leaving investors to assess cost versus return potential.
Stonepeak on transport’s ‘robust set of opportunities’
Stonepeak’s James Wyper discusses the encouraging backdrop for transport and logistics investing in North America resulting from strong economic fundamentals and favourable government policies.
US rail investment reaches a junction
Short line freight rail remains attractive to investors, but opportunities in passenger rail continue to be viewed with caution.
Schroders Greencoat: Renewables lead the charge
Cost competitiveness, government support and societal need are driving long-term investment opportunities in green energy, says Schroders Greencoat’s Coen Weddepohl.
Benchmarking the Inflation Reduction Act’s progress
A year after it came into force, the effects of the Inflation Reduction Act are beginning to be seen.
Roundtable: US emerges as a renewables leader
A year on from the Inflation Reduction Act, the US is rapidly positioning itself to overtake Europe as the global energy transition frontrunner, according to our roundtable participants.
Ardian: Why ground leasing is an unsung hero
Ground leasing is expanding from telecoms towers into renewables and represents an underserved but compelling segment of the infrastructure industry, says Ardian’s Michael Obhof.
Green hydrogen is primed for US growth
Government backing boosts investment case for low-carbon hydrogen but challenges remain.
NextEnergy Capital on why investors are turning to specialist managers
Focused investment strategies have been used across traditional and alternative asset classes and should also be applied to solar infrastructure, believes Shane Swords.
Federal funding drives EV infrastructure
Growth of electric vehicle charging infrastructure will depend on utilisation rates, reports Keith Button.
Ridgewood Infrastructure: Plugging the leaks in US water
Ridgewood’s Ross Posner and Michael Albrecht see opportunity in America’s fragmented water systems.
Can data centres turn green?
The importance of data centres to the global economy is not lost on investors, but a focus on sustainability could end up damaging the valuations of these energy-hungry assets.
Palistar Capital: Lighting the digital fuse
US digital infrastructure stands head and shoulders above the competition, says Palistar Capital’s Omar Jaffrey.
Mexican decarbonisation lags rivals
Clean energy generation in the country has suffered due to years of political uncertainty, but next year’s election offers a rare glimmer of hope.
The North American infrastructure market was going strong – not least in US offshore wind and Canadian renewables – even before the $370 billion Inflation Reduction Act came along. That legislation, which includes $260 billion of energy transition tax credits, has provided a significant further boost. However, there is more to the market than the energy transition, with transport – not least rail and shipping – telecommunications, data centres and more all also helping to keep investors busy.
Although there are opportunities beyond the US, the Infrastructure Investment and Jobs Act, finally passed by the Senate in August, promises a new dawn for the market, with $550 billion of new federal spending over five years. Roads, bridges, rail, public transport, airports, ports, power generation, water infrastructure and broadband are all among the big winners
The world has changed, and the question is how this crisis might be turned into an opportunity to reimagine infrastructure. North America has seen huge sums pouring into digital infrastructure and renewable energy in the last few months. This suggests that for every sector, such as transport, that has been pummelled by the pandemic, there are plenty of opportunities opening up elsewhere for infrastructure investors.
Private capital is doing its part to meet North America’s infrastructure needs. Despite the continued absence of the $200 billion in federal funds and the new infrastructure bill that President Donald Trump promised in his 2018 State of the Union address, investment continues in the US’s energy revolution, as well as in many successful PPP projects in Canada.
PPPs have proven more problematic in the US than they have in its northern neighbour, with major players such as SNC-Lavalin and Swedish construction firm Skanska both stepping back from the market after experiencing losses.
However, on the theme of major players, they don’t come much bigger than Blackstone, which has raised $14 billion for a North America-focused fund, bringing the promise of plenty more activity in the future.
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