The infrastructure evolution: Investing in energy megatrends

Publicly listed infrastructure is uniquely positioned to provide investors with exposure to some of the most powerful fundamental themes currently driving global markets. In our view, the booming investment cycle around generative artificial intelligence (AI) will drive a proliferation of data center development. When coupled with growth in the onshoring and nearshoring of manufacturing capacity, the U.S. will experience a period of accelerating demand for electricity not seen in a generation.

Meeting this collective demand will necessitate expanded electricity-producing resources across generation types, particularly in renewable energy technologies, nuclear and natural gas. And while this will create opportunities across the investable infrastructure universe, there will inevitably be relative winners and losers among specific industries and individual companies over time. We believe investing in listed infrastructure is best-suited to active portfolio management, which may help optimize investor exposure to the asset class in ways that passive or indexed approaches are unable to match.