• Over the past 10 years, private infrastructure assets under management have more than quadrupled, to a record $1.3 trillion
• Investor interest in digital infrastructure is growing with data center investments surging due to AI-driven demand
• Funds are evolving their strategies, leveraging new investment structures and operational efficiencies to enhance returns in a maturing industry
BOSTON—Private investment in infrastructure is regaining momentum, according to the latest annual Infrastructure Strategy report by Boston Consulting Group (BCG). The report, Infrastructure Strategy 2025: How Investors Can Gain Advantage as the Asset Class Matures, details how the private infrastructure market, which has been navigating macroeconomic uncertainty and fluctuating deal volume, shows signs of stabilizing and remains a safe haven in volatile times.
Infrastructure assets under management continued to grow over the past year, reaching an all-time high of $1.3 trillion as of June 2024. Nevertheless, fundraising remains below its 2022 peak, reflecting lingering investor caution. Meanwhile, deal activity, although still below peak levels, is expected to increase as sponsors seek to exit investments and reinvest capital.
Investment Trends and Sector Insights
The report highlights a shift in investor focus, with greater allocations to high-growth sectors such as digital infrastructure and energy transition. Data center investments, driven by AI and cloud computing demands, have been particularly strong, with a record $50 billion allocated to the sector in 2024, up from just $11 billion in 2020. Despite a slowdown in deal flow across most infrastructure asset classes, investors are optimistic about long-term opportunities in core sectors such as energy, transport, and logistics.
“Infrastructure remains a cornerstone of private investment strategies, offering stability and inflation protection in volatile markets,” said BCG managing director and senior partner Wilhelm Schmundt, the firm’s global lead for infrastructure investment and a coauthor of the report. “As investors adjust to a maturing market, we see significant opportunities emerging in energy transition, digital infrastructure, and new investment structures designed to attract capital.”
Key Findings from the Report
- Fundraising Outlook. Infrastructure funds raised $87 billion in 2024—a 14% year-over-year increase from 2023, but still 43% below 2022 levels.
- Deal Volume and Value. Infrastructure transactions declined by 8% in 2024, following a 19% drop in 2023. However, large-scale deals in digital infrastructure and energy transition signal a potential rebound. The average deal size is trending below the 2023 mark and is 40% below the peak reached in 2021.
- Sector-Specific Trends. Although traditional energy investments remain essential, renewable energy and battery storage solutions continue to attract investor interest. AI-driven demand has made data centers one of the fastest-growing infrastructure asset classes.
How Funds Are Adapting to the New Environment
Infrastructure investors are refining their strategies to remain competitive in an evolving market. Key approaches include:
- Industry Consolidation. M&A is becoming a key tool for general partners. Some are scaling up into “one-stop-shops” for infrastructure investments across the entire asset class. Others are pursuing deals to strengthen their niche, geographic, or sector focus, reinforcing both broad-based and specialist strategies.
- Expanding Investment Mandates. Many funds are broadening their product options and are offering a range of infrastructure strategies with different risk/return profiles to their investors.
- Enhancing Operational Value Creation. Funds are adopting more active asset management strategies, leveraging technology, and improving efficiency to maximize returns.
- Exploring New Fund Structures. The rise of continuation vehicles, co-investments, and sector-specific funds is providing limited partners with more tailored investment opportunities.
Looking Ahead: Building for the Future
Despite near-term uncertainties, the report anticipates continued growth in infrastructure investment, particularly in sectors driven by AI and digital transformation. Governments worldwide are increasingly looking to private capital to bridge infrastructure funding gaps, fostering numerous co-investment opportunities.
“Private investment will be critical to modernizing infrastructure and meeting the world’s growing connectivity and energy needs,” said Alex Wright, BCG managing director and partner, and a coauthor of the report. “With capital deployment expected to accelerate in 2025, we anticipate a more dynamic investment landscape, particularly in AI-driven infrastructure, renewables, and smart grids.”
Download the publication here.
Media Contact:
Eric Gregoire
+1 617 850 3783
gregoire.eric@bcg.com