Modern digital infrastructure and power facilities representing the growing role of private capital in financing data centres, energy networks and the wider AI economy.

Private infrastructure attracts record institutional capital as AI reshapes investment landscape

Institutional appetite for private infrastructure is accelerating, with energy transition and AI-driven demand helping push the asset class towards a new fundraising record.

Private infrastructure fundraising surged by more than 60% in 2025 to $211bn, taking global infrastructure assets under management to $1.6trn, according to Boston Consulting Group. Infrastructure now represents around 10% of global alternative assets.

The momentum has continued into 2026. In August, KKR closed a $19.2bn infrastructure fund targeting North America and Western Europe, its largest infrastructure vehicle to date. Reuters reported that investor demand is being driven particularly by the energy transition and digital infrastructure, including data centres benefiting from the expansion of artificial intelligence.

The scale of the opportunity is also reflected in deal activity. BCG reported this month that the value of global digital-infrastructure M&A increased by more than 60% in 2025 as AI changes the economics and investment requirements of the sector.

European pension investors are already significant participants. France’s ERAFP had €1.46bn invested in infrastructure funds and €1.83bn in private-equity funds at the end of 2024, according to its latest public report. It also had €730m committed to private equity and infrastructure funds focused exclusively on renewable energy and the energy transition.

The convergence of private capital, digital infrastructure and energy investment could therefore become an increasingly important feature of institutional portfolios.

For asset owners, infrastructure offers exposure to long-term structural growth while providing a route to deploy capital into assets essential to the next phase of economic development.

Image description: Modern digital infrastructure and power facilities representing the growing role of private capital in financing data centres, energy networks and the wider AI economy.