We’re at a defining moment in the infrastructure cycle. AI is accelerating faster than any prior technology wave, driving an unprecedented surge in data center development, power procurement and grid interconnection. Today, data centers consume roughly 4% of US electricity — a share expected to double by 2030 and quadruple over the following decade — outpacing the speed at which traditional generation can come online.1
After growing just 0.8% annually from 2000 to 2024, US electricity demand is now projected to rise at a 2.2% CAGR through 2050.2 Nearly every major power market is feeling the pressure, with regions including Texas and the Mid-Atlantic expected to face deficits for the first time in decades.
These dynamics make infrastructure one of the most attractive opportunity sets in private markets today.
The pace of the AI revolution is unlike any previous technology cycle. The mainframe era unfolded over decades. The dot-com boom took years. AI’s disruptive potential was demonstrated in a matter of weeks, and the sector continues to evolve at breakneck speed.
Against this backdrop, the world faces an unprecedented need for secular infrastructure capital expenditures across digital infrastructure, power & utilities and energy transition, which is supporting investment opportunities in next-generation infrastructure assets across three key areas in 2026:
The rapid buildout of AI and cloud computing is creating one of the most significant demands for digital infrastructure we’ve seen in decades. Data centers, semiconductors, cell towers and fiber networks are the new roads, tolls and bridges, serving as the backbone of the digital economy and enabling everything from hyperscale AI to enterprise and industrial applications.
More than 90% of the new energy capacity built in 2024 was clean energy, a trend that carried over to 2025 and is expected to continue for the foreseeable future.3
Hyperscale technology companies — the leading operators of cloud and AI infrastructure — have set ambitious clean energy goals, often committing to 100% renewable power for their facilities. In addition, renewable energy paired with battery storage is a fast, cost-effective way to meet the rapidly expanding power needs of AI. These modular, rapidly deployable energy sources can scale alongside the rising electricity needs of both AI and broader electrification trends, offering investors an opportunity to participate in the energy transition while generating long-term, stable returns.
For the first time in decades, regions such as Texas and the Mid-Atlantic are projected to face power deficits, highlighting structural gaps in the nation’s transmission and distribution networks. Aging infrastructure, regional bottlenecks and capacity constraints all make it challenging to deliver reliable electricity to businesses, data centers, factories and homes. Upgrading transmission lines, expanding substations and reinforcing distribution networks will help ensure that essential power can flow where it’s needed, when it’s needed.
Battery storage has emerged as a critical piece of this modernization puzzle. By balancing supply and demand, managing peak loads, and providing backup during outages, storage strengthens grid reliability and resilience.
Infrastructure is not abstract. You can visit it. Touch it. In our team’s words: “If you kick it, it hurts.”
These are tangible assets built to serve daily life and, in our view, infrastructure has always been an attractive portfolio allocation to build resilience, lower volatility, hedge against inflation and gain access to attractive return streams with low correlation to other asset classes. But what we’re seeing now is different in scale, speed and urgency.
The world is rewiring itself — digitally, electrically and physically. As a result, we’re now facing a future where power generation, storage and delivery will be one of the most important economic variables of the next decade. For investors, this is creating an enormous opportunity set.
The next generation of infrastructure isn’t just about traditional power plants or roads — it’s about modular, scalable solutions that meet the growing needs of data, energy and connectivity. Private infrastructure is at the center of this transformation and for investors, 2026 presents an opportunity to participate in building the systems that power the modern economy, with the potential for attractive, durable returns.
