Infrastructure 2026 Midyear Outlook

Infrastructure is benefiting from a powerful supply-demand imbalance, as AI, electrification and energy security are pushing demand faster than the system can deliver. The most attractive opportunities appear to be in contracted assets backed by private demand, where visibility is stronger and exposure to regulation and affordability pressures is lower.

Within digital infrastructure, AI is moving from a theme to a structural trend, but valuations in the most visible areas call for selectivity. That has increased interest in second- and third-order beneficiaries such as fiber, where distributed compute should support durable demand.

We also see compelling themes in water and waste, supported by climate resilience needs and policy-driven modernization. Even so, investors should remain mindful of geopolitical risk, supply chain disruption and rate sensitivity across infrastructure-related assets.