Five trends that support Infrastructure and Real Estate investment 

The world is changing, and several megatrends are driving this transformation. Digitalization, the energy transition with the rise of renewables, and the development of Artificial Intelligence (AI) are three aspects shaping the economy and the world we will live in over the coming decades.

These transformations will require, among other things, significant investment in infrastructure: data centers, wind farms...

In the coming years, the sector will demand very high investments that, in many cases, the public sector will not be able to cover alone, necessitating the involvement of private companies.

In this edition of Learn and Growth, we will explore the trends driving investment in infrastructure and Real Estate and how you, as an investor, can benefit from this transformation through Private Equity.

New trends like Artificial Intelligence (AI) and remote work are increasing the demand for supporting infrastructure, such as data centers. OpenAI alone plans to build data centers with 5 gigawatts of capacity (for reference, five gigawatts are enough to power the entire city of Miami), according to EQT, one of the leading international private equity firms.

With a shift toward renewable energy and the gradual phasing out of fossil fuels, the need for investment in new infrastructure to support this transformation is growing exponentially.

Government policies, sanctions, and incentives related to the extraction and use of different energy sources are driving investment in the infrastructure necessary to achieve a transition to a low-carbon economy. The construction of wind farms, solar panels, and hydroelectric plants will require significant volumes of private investment.

According to EQT, the International Energy Agency predicts that renewable energy will surpass coal as the primary source of electricity next year.

Population growth in emerging countries (China, India, etc.) is creating the need to expand infrastructure as well as invest in the maintenance and remodeling of existing facilities to meet the needs of the entire population.

This growth requires investment in essential infrastructure such as roads, potable water systems, hospitals, and electrical grids, as well as in large urban development projects.

The rise in online shopping and companies' efforts to shorten supply chains require investment in infrastructure to bring production closer to the end customer through logistics centers and other developments.

While emerging countries are experiencing a demographic boom, more traditional powers are seeing their population pyramids invert. These aging societies pose many challenges but also opportunities, giving rise to an economy known as the "Silver Economy."

This demographic segment reaches old age with resources and good health, creating demand for new infrastructure adapted to their lifestyle. In the Real Estate sector, coliving centers are particularly noteworthy. For example, in 2021, the private equity firm Carlyle, in partnership with Greystar, developed a project designed for older adults who want to enhance their social lives and live in a community where they can enjoy shared public spaces.

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Crescenta