Global listed infrastructure is at the precipice of a transformative era, driven by unprecedented demand forces that are reshaping economies, industries, and investment landscapes. The scale of global infrastructure needs is staggering, with nearly $100 trillion in spending required by 2040, according to the World Economic Forum. Governments alone cannot meet this demand, leaving an estimated $15 trillion funding gap that opens the door to private and listed infrastructure investors. This shift presents a once-in-a-generation investment opportunity, but it also demands a nuanced understanding of the forces at play and the risks involved.
Developed markets are grappling with the urgent need to upgrade ageing systems, while emerging markets must expand capacity to support demographic and urban growth. Massive public programmes are underway, but listed infrastructure companies are increasingly essential to bridge the gap. One of the most powerful structural trends reshaping infrastructure is the rising electricity demand. After nearly two decades of flat growth in the US, power demand is expected to expand by 3 to 4 percent annually through 2030, with some utilities seeing growth above 5 percent. This surge is driven by the electrification of transport, precision manufacturing, and the explosion in artificial intelligence and data centres. US data centres alone could account for nearly 12 percent of total electricity demand by 2030, up from less than 5 percent today.
Meeting this demand requires a ‘more of everything’ approach. Renewables are gaining market share, with wind, solar, and biomass projected to grow from 10 percent of global generation today to nearly 30 percent by 2040, and potentially 50 percent under more aggressive policies. Yet natural gas and nuclear remain critical for reliability, with 60 percent of incremental data centre demand in the next five years expected to be met by natural gas. This creates increased opportunities for electric and gas utilities, renewable developers, and midstream energy providers that can balance cost, sustainability, and reliability. However, investors must navigate regulatory nuances and separate hype from substance.
The digital revolution is no longer just about faster smartphones. Every industry is building digital platforms, with artificial intelligence still in its early innings. Global mobile data traffic is forecast to more than double by 2030, with 5G networks carrying 80 percent of all traffic, up from 35 percent at the end of 2024. This transformation demands enormous infrastructure investment. Beneficiaries include mobile phone tower companies enabling connectivity, satellite operators providing global reach, and data centres powering and storing the digital economy. Utilities supplying reliable energy also stand to gain.
The Covid-19 pandemic and geopolitical tensions have exposed the fragility of global supply chains, sparking a trend toward ‘nearshoring’ and ‘reshoring’ manufacturing. In the US, manufacturing construction spending has tripled in the past three years as companies move production closer to home. Infrastructure companies that facilitate the movement of people and goods—railways, ports, airports, and toll roads—are positioned to benefit from this structural shift. These logistics operators, which account for up to 30 percent of the listed infrastructure universe, also stand to gain from operational efficiencies, e-commerce growth, and increased demand for domestic transport capacity.
As compelling as the global infrastructure market appears, investors should understand potential risks. In addition to macro factors such as inflation and interest rates, adverse regulatory or political decisions present additional risks for the asset class. This could include adverse amendments in allowed returns for regulated assets, changes in governments’ energy policy priorities and subsidy frameworks, or in project permitting. To mitigate this, investors should seek to understand local nuances, helping to anticipate and interpret those outcomes, which are crucial to identifying market mispricing and, therefore, investment opportunities.
Despite these challenges and risks, global infrastructure investment is not optional—it is necessary. The world must meet surging power demand, rewire economies for the digital age, and rebuild resilient supply chains. With governments unable to do it alone, listed infrastructure stands at the centre of the solution. For investors, the opportunity is both structural and long-term: exposure to essential services with high barriers to entry and predictable cash flows, mitigation of inflation impact, attractive historical performance, and participation in the transformation of the global economy through access to major disruptive themes such as next-gen energy and AI investments.
The convergence of these forces signals a golden age for global listed infrastructure, and those positioned early may benefit from one of the most powerful investment trends of our time. However, the path forward is not without its complexities. Investors must navigate regulatory landscapes, technological advancements, and geopolitical shifts to capitalise on this opportunity. The road ahead is paved with both promise and challenge, and only those who understand the nuances will truly reap the rewards.