Matthew Cole

A survey carried out by Infralogic on behalf of the firm found that seven in 10 senior executives in the global infrastructure sector expect their level of infrastructure fundraising to increase over the next 24 months, with three in 10 anticipating a substantial increase. 

Infralogic’s analysis found that, from 2015 to 2022, the infrastructure asset class witnessed a rapid expansion.

In 2015, the infrastructure M&A market recorded 551 deals valued at $148.5 billion USD. By 2022, these figures had skyrocketed to 2,105 deals worth $658.4 billion USD, representing an increase of 282 per cent in volume and 343 per cent in value.

According to Infralogic, this impressive growth was fuelled by a favourable low-interest rate policy environment, which made borrowing for large-scale critical projects more attractive.

However, in 2023 this forward momentum slammed into reverse, with the number of M&A transactions decreasing by 14.5 per cent to 1,800, with a fall of 43.7 per cent in value to $370.8 billion USD.

The sector’s historically outstanding performance is nevertheless expected to resume, with 77 per cent of the 100 respondents to the DLA Piper survey expecting an increase in their infrastructure investments over the next 24 months.

The global push towards decarbonisation is one of the most significant expected drivers of infrastructure investment in 2025 and into 2026.

Nearly 54 per cent of respondents identify the energy transition as a main catalyst for investment, with renewables and energy efficiency projects leading the charge. This trend is expected to continue, driven by global climate commitments and supportive policies. 

Digital infrastructure is also due to accelerate investment, with 36 per cent of respondents citing digitalisation as a primary investment driver. The expansion of data centres, cloud computing and AI is expected to guide significant capital flows, particularly in developed markets such as Europe and North America.

Matthew Cole, partner and head of corporate at DLA Piper Ireland, said: “Following a challenging year for infrastructure investment in 2023, impacted by a higher interest environment and geopolitical uncertainly around the world, investors seem to have a strong appetite for the asset class.

“With over two-thirds of our survey group expecting increases in investment over the next couple of years, we look to be on track to continue the impressive performance that has historically been attached to infrastructure.

“Much of this is driven by the demands of a changing world in the form of energy transition and the rapid growth of our digital world.”