Listed infrastructure powers AI—and vice versa

The integration of artificial intelligence (AI) and data growth is poised to significantly enhance the infrastructure sector as a long-term investment theme. This growth is expected to drive demand for power, optimize utility operations, and reduce costs.

Utilities are leveraging AI to improve efficiency and reliability, which could result in lower customer bills and increased capital expenditures, ultimately boosting revenues. Across various subsectors, AI is anticipated to optimize processes in toll roads, freight rail, water utilities, midstream energy, and communication infrastructure, providing opportunities for improved performance and new revenue streams.

Additionally, AI’s burgeoning power requirements will likely catalyze investments in renewable energy, positioning regulated utilities to benefit from heightened generation capacity needs. With infrastructure's role as an inflation hedge and its low correlation with other asset classes, AI presents a compelling opportunity for investors in listed infrastructure seeking diversification and stable returns.