Digitalisation, AI, 5G mobile networks, and the shift to a low-carbon grid are reshaping economies and industries, driving surging demand for critical infrastructure: essential assets powering the digital economy, energy security, and future connectivity. As cloud services and generative AI take off, the supporting infrastructure must scale up just as fast. Data centres, ultra-low latency networks, and flexible energy sources are now indispensable, with demand for data centres projected to grow more than 30% annually until 2030.
The amount of power consumed per rack (an open-frame structure holding servers) in a data centre or server room is climbing rapidly, AI workloads are soaring and, as a result, global electricity use is set to triple within the decade. Infrastructure companies stand to benefit, offering a compelling opportunity for longer-term investors.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Dialling up profits
Vertical Bridge is the largest privately owned operator of wireless towers in the United States, with a portfolio of more than 17,000 towers. Backed by sector-specialist DigitalBridge, the company has scaled up rapidly through acquisitions and new construction.
The rollout of 5G is accelerating demand for dense, low-latency mobile infrastructure. With major American carriers investing heavily in next-generation networks, Vertical Bridge is well-positioned to benefit, supported by long leases, high-quality tenants, and predictable cash flows.
CyrusOne operates more than 50 data centres across North America and Europe, serving large enterprise customers and cloud service providers. These data centres are essential to the digital economy, supporting everything from AI and cloud computing to video streaming and online services.
The investment case for data centres has only strengthened with the surge in AI and the rapid growth in data consumption. CyrusOne benefits from long-term contracts, built-in price rises, and a high-quality customer base, providing defensive characteristics alongside exposure to structural growth. As digital transformation accelerates, demand for data infrastructure is likely to remain strong.
As one of North America’s largest independent power producers, Calpine operates approximately 27 gigawatts (GW) of capacity, primarily from gas-fired plants, complemented by nearly 800 megawatts (MW) of renewable energy. It plays a vital role in delivering reliable baseload power while supporting the transition to a lower-carbon grid.
With energy security and the reliability of the grid becoming increasingly important, as evidenced by the blackout in Spain and Portugal, Calpine’s flexible generation capacity is in high demand. The company also has an active pipeline of solar and battery-storage projects. Constellation Energy has announced that it is to acquire Calpine in a cash and equity deal.
We will retain residual exposure to the combined entity for two years after the deal completes in early 2026. Together, Constellation and Calpine will have 60 gigawatts of capacity from zero- and low-emission sources, including nuclear, natural gas, geothermal, hydro, wind, solar, co-generation and battery storage
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
-
Zoopla: House sales fall for first time in two years as buyers wait for Autumn BudgetThe average price of a house in September was £270,000, down £1,000 from August as the housing market’s Christmas slowdown came early, Zoopla says
-
Number of high-earning women jumps 12% – how to convert income into pensionsMore women than ever are paying the highest rate of tax as record numbers succeed in high paying professional roles. But their pension saving still needs to catch up
-
Cash in on the vast growth potential of the companies electrifying the worldOpinion Martin Todd, portfolio manager, head of sustainable equities, Federated Hermes, highlights three electrification companies where he'd put his money
-
Galliford Try has firm foundations for strong growthBuilder Galliford Try has a finger in a wide range of pies, notably important work in the public sector
-
Card Factory is a stand-out small-cap going cheapIn a digital world, we still value the personal touch. That’s good news for Card Factory, whose unique business model is suited to weather all economic storms
-
Emerging markets boast top-quality growth stocks at bargain pricesOpinion Lim Wen Loong, investment director at Ashoka WhiteOak Capital, selects three growth stocks where he’d put his money
-
Beware the bubble in bitcoin treasury companiesBitcoin treasury companies are no longer coining it. Short this one, says Matthew Partridge
-
Klarna leads a financial revolution – should investors buy?Klarna has ambitions to rewire the global payments system and has huge growth potential
-
How to profit from silver’s record riseSilver often lets investors down, but there may now be room for further gains, says Dominic Frisby
-
How Next defied the odds and positioned itself as a British high-street stapleNext rose from a near-death experience and now thrives as a high-street staple. What's driving its success – and should you invest in the retailer?
