2025 Infrastructure Outlook: The Digital Power Problem

Key Takeaways

• Two of our major themes, digitalization and the energy transition, are converging. Data centers and other large-scale power users are starting to have trouble sourcing enough electricity for their operations.
• Supported by transformative technologies like artificial intelligence, the increased demand for data creates a compelling backdrop to invest in the hard assets enabling the digital ecosystem. This starts with data centers, but also includes fiber optic networks, wireless towers, and other assets.
• Large-scale investment in both power generation and transmission will be needed to solve the digital power problem, along with new technology and creative solutions. We believe this will lead to an increase in energy transition investments and technologies, as well as ongoing opportunities in conventional energy.
• Digitalization, the energy transition, and the digital power problem are massive challenges that require scaled capital and deep sector expertise to solve, but also present a tremendous investment opportunity to those with the ability to solve them.