Infrastructure stands out as capital rotates away from concentrated equity markets
Brent Burnett
In a market increasingly dominated by a small group of AI-linked companies, investors are actively looking for diversification, and infrastructure is one of the few sectors areas delivering it. Infrastructure offers exposure to hard assets, broad economic activity, and essential services that people rely on every day, from energy to transport and water.
With more than a decade of data showing that infrastructure can deliver solid total returns, reliable income, and meaningful downside protection across cycles, the asset class also offers a degree of inflation resilience, through contract-linked pricing and rising replacement costs. Importantly, long-term investors view volatility differently. Short-term market movements or geopolitical shocks don’t change the underlying need for critical assets. That’s where private infrastructure continues to prove its value.
Global tailwinds support next phase of infrastructure investment
2026 is shaping up as a key year for infrastructure expansion globally. Europe is doubling down on energy security, while the rapid growth of AI and data centres is driving demand for power and digital infrastructure.
There are also underappreciated opportunities, including last-mile fibre and specialist logistics infrastructure—particularly in supply-constrained areas—continues to offer attractive fundamentals.
In addition, power scarcity is supporting higher prices in energy markets, even as renewables face policy headwinds in some regions. And in private markets, the infrastructure secondary market is emerging as a compelling opportunity particularly for investors with the scale and relationships to access high-quality assets.
APAC and Europe dynamics shaping infrastructure outlook, with Australia among relative beneficiaries
APAC is far from a uniform story. Asia remains a dominant buyer of global energy, accounting for around 75% of Gulf oil and 60% of LNG, which has left the region highly exposed to recent market volatility. Prices have surged, with benchmark LNG rates jumping roughly 50% in the early phase of the conflict, and some spot cargoes trading at multiples of pre-war levels. The impact, however, is uneven. South Asia and parts of frontier ASEAN are feeling the pressure from higher energy costs, while resource-rich markets such as Australia, Indonesia and Malaysia are benefiting, seeing stronger cash flows as demand drives higher utilisation across energy export infrastructure. Meanwhile, in Europe, 2026 is shaping up as a pivotal year for infrastructure investment. Governments are accelerating efforts to strengthen energy security, while surging demand linked to AI and data centres is driving new investment across power and digital infrastructure. The key takeaway is that infrastructure is not a single trade. It’s highly regional, and investors need to be selective in how they position capital.
By Brent Burnett, Global Head of Infrastructure and Real Assets
