Everyday life is powered by systems we rarely pause to notice. The electricity that lights our homes, networks that move our data, and roads and rails that move everything else together form the infrastructure that underpins modern economies.
As those economies evolve, this foundation is being renewed and reimagined, making infrastructure investing a reinvigorated pathway for investors to participate in lasting, real-world growth.
What is infrastructure investing?
Infrastructure investing involves owning or financing the physical and digital assets that deliver essential services society relies on everyday. Traditionally, this meant transportation networks (roads, ports, railways), utilities (power and water), and energy systems (pipelines, power plants). Today, the definition has expanded to include digital infrastructure like data centers, fiber networks, cell towers and edge computing, as well as climate resilience projects like battery storage and flood protection systems. This globalized evolution has enabled how we live, work and connect today, creating new opportunities for investors to participate in how these facets of everyday life will be shaped in the future.
These assets typically share a few key characteristics that appeal to long-term investors:
- Long asset lives: Infrastructure projects can last decades, often with stable and predictable use.
- Contracted or regulated cash flows: Many projects operate under long-term agreements or regulated pricing frameworks, supporting steady income generation.
- Inflation linkage: Revenues or tariffs are frequently tied to inflation, providing a natural hedge in rising-price environments.
For investors, infrastructure can offer a blend of growth and stability by connecting essential services that evolve with technology and demographics to typically steady returns. With an increasing need for infrastructure that supports a rapidly changing technological landscape, there may be simultaneous emerging opportunities for investors to participate.
Why infrastructure is gaining traction now
The infrastructure market is entering a period of significant growth. Waves of unprecedented investment, demand for AI-driven data infrastructure and renewed investor enthusiasm are propelling infrastructure investing into the spotlight.
A trillion-dollar global buildout
The global infrastructure market is undergoing a historic expansion. According to Allianz1, it is estimated that the world will require $26–30 trillion in new infrastructure investment by 2035, driven largely by the energy transition, modernization of power grids and decarbonization efforts.
The renewable energy infrastructure segment alone is expected to reach $1.2 trillion by 2025 as reported by CoinLaw, growing roughly 8% per year2. Meanwhile, digital transformation including cloud computing, 5G deployment and data center expansion is projected to grow around 15% annually, approaching $185 billion in 20253.
AI and the data infrastructure boom
Artificial intelligence is amplifying demand for digital and energy infrastructure. Training and operating AI models require immense computing power as well as electricity and cooling capacity. BlackRock notes that AI proliferation could multiply global data center energy use several times over the next decade4.
To meet that demand, major corporations like BlackRock and Microsoft have launched a Global AI Infrastructure Investment Partnership, targeting $100 billion in new data centers and supporting power infrastructure. In the U.K., BlackRock recently committed $700 million to data center development, just one example of how institutional capital is flooding into the sector5.
This impending rise in data center needs and expansion of digital infrastructure could represent increased opportunity for individual investor participation and growth. Where large corporations and institutional investments go, emerging businesses and venture capital investment are likely to follow.
Investor sentiment and deal momentum
Momentum in infrastructure deal-making is accelerating as well. According to Roland Berger, 86% of bankers and fund managers expect infrastructure deal activity to grow in 2025 (up from 77% in 2024)6. Fundraising pipelines are strengthening and valuations are offering better relative value compared to public markets after years of compression. UBS notes that this “valuation reset” has opened a more attractive entry point for investors seeking long-duration, real-asset exposure.
The institutional playbook
Large institutions have long viewed infrastructure as a strategic allocation for income and diversification, since they can tolerate its illiquidity and long horizons. They also have direct access to private market deals and co-investment opportunities, advantages that until recently, were out of reach for most individual investors.
According to HodesWeill & Associates’ “2025 Infrastructure Allocations Monitor”, 115 institutional investors representing more than $10.6 trillion in assets under management collectively held over $520 billion in infrastructure investments7.
Typical allocations range from 3–7% of portfolios, reflecting the asset class’s blend of yield, inflation protection and low correlation with traditional stocks and bonds. In 2025, institutions said they planned to increase or maintain their exposure to digital, transportation and energy infrastructure by 71%, 66% and 64%, respectively.
A window of opportunity for investors
Global infrastructure is experiencing a massive transformation, evident in three key areas: the scale of the global buildout, the intersection of the energy transition and AI, and the increasing accessibility of infrastructure as an asset class. Investors should consider taking note as accelerating demand for infrastructure forges new investment opportunities.
A once-in-a-generation buildout
The rise of AI, electrification and renewable energy has sparked a global infrastructure renaissance. Unlike previous cycles led by government spending, today’s expansion is powered by private enterprise and technology adoption. This means faster innovation cycles and potentially higher returns.
For example, AI-driven demand for data centers could require $100+ billion in capital investment over the next few years8. Projects like power plants, cooling systems and fiber networks are the physical infrastructure of the digital economy. Investors who gain exposure early could potentially benefit from the wave of institutional capital that is still ramping up.
The energy transition meets the AI era
Data centers are among the world’s fastest-growing energy consumers. As AI workloads scale, global electricity demand is projected to double. That’s creating immense tailwinds for renewable energy generation, grid modernization and battery storage, all of which are core components of the infrastructure investment universe. For investors, this is an exciting juncture where infrastructure now spans the nexus of digital transformation and the green energy transition.
Timing and accessibility
Institutional allocations to infrastructure reached 5.9% in 2025, up from 5.6% the prior year. It’s a seemingly small shift with large implications. As more institutional investors move in, valuations of high-quality projects may rise. Early retail participation through private market investment platforms offers individual investors a chance to capture value before the next wave of institutional capital arrives.
The good news: Barriers to participation are coming down. New funds and the rising popularity of alternative investment platforms have made infrastructure investing more accessible than ever.
How individual investors can access infrastructure
There are several potential avenues available for investors to participate in the global infrastructure boom.
1. Self-directed IRAs (SDIRAs)
For long-term investors, a self-directed IRA can be a powerful way to hold infrastructure assets. Unlike traditional IRAs that are typically limited to stocks and bonds, SDIRAs permit private market investments like renewable energy projects or private infrastructure funds.
Given infrastructure’s long lifespan and inflation-linked returns, pairing these assets with a tax-advantaged retirement account can create a compelling blend of growth and income. Keep in mind that SDIRAs do require a specialized custodian and rigorous due diligence, so working with a platform that provides these services can help make the investing experience seamless.
2. Publicly-traded ETFs and funds
Exchange-traded funds (ETFs) can offer diversified, liquid exposure to infrastructure-related companies.
- Pros: Liquidity, transparency, and low cost.
- Cons: Indirect exposure; these funds invest in companies involved in infrastructure, not in the physical assets themselves.
3. Infrastructure-focused REITs and listed companies
Real estate investment trusts (REITs) and listed utilities offer targeted exposure to sub-sectors like data centers, renewable power or telecom towers. These firms often generate steady dividend income tied to essential services, though they can still move with broader equity markets.
4. Private infrastructure funds and platforms
Interval funds, closed-end funds and online private market platforms pool investor capital into infrastructure projects ranging from toll roads and renewable energy assets to digital networks. These vehicles offer closer exposure to underlying cash flows but often come with higher minimums, fees and limited liquidity.
5. Fractional and direct investments
Emerging models now allow investors to buy fractional stakes in renewable projects or storage facilities. While niche, this trend brings investors closer to the real assets powering growth. Such opportunities require due diligence and a tolerance for illiquidity but can be rewarding for those seeking high-growth, impact-oriented investments.
Building the future into your portfolio
Infrastructure investing is evolving from a niche institutional strategy into a mainstream opportunity for individuals. With AI driving unprecedented demand for digital and power infrastructure and the energy transition reshaping global supply, this asset class sits at the intersection of technology, sustainability and economic growth.
Today’s investors don’t need billions to participate. Whether through listed SDIRAs, ETFs or REITs, it’s now possible to gain exposure to the same essential assets that have long powered institutional portfolios. For those with a long-term horizon, incorporating infrastructure into a tax-advantaged retirement account offers the chance to build not just wealth, but ownership in the fabric of tomorrow’s physical and digital economies.
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