Dispatches from Berlin: GIIA summary of the 2025 Infrastructure Investor Global Summit
GIIA's Vlad Benn writes about key takeaways from the conference
Pictured: GIIA’s chief executive Jon Phillips moderates a panel at the conference. Credit: PEI
Infrastructure is evolving, expanding beyond traditional physical assets to include digital infrastructure. At the recent Infrastructure Investor Global Summit, discussions highlighted key attractions of the sector, such as inflation protection, predictable long-term revenues, and strong asset backing. Despite challenges like the denominator effect limiting institutional investments, investor interest in infrastructure remains high.
Liquidity was a major focus, with investors seeking more flexible capital structures and distributions. To address this, GPs are increasingly blending equity and credit to fill funding gaps and offer flexible options for LPs. These hybrid strategies have been particularly useful in "evolving" infrastructure sectors, such as energy efficiency. Meanwhile, YieldCo models are becoming more popular, especially in datacentres and similar assets that provide stable revenue streams.
While niche strategies have their place, scale was repeatedly emphasised as critical for success. Many investors want to manage fewer GP relationships, leading to consolidation amongst firms that can offer multiple products on a single platform.
Political shifts were identified as a key challenge for infrastructure. Much of the discussion focused on American policies, particularly President Donald Trump’s tariffs. While these tariffs have not yet drastically altered global trade, they introduce uncertainty into investment decisions. Despite the US’s inward-focused policies, its economy remains strong and central to global markets. However, this unpredictability could push Europe towards greater self-sufficiency, strengthening its position as a competitor and reducing its reliance on the US.
Rising energy demand was highlighted as a major investment opportunity. For example, US energy consumption is expected to grow by about 2.5% per year over the next decade, a significant increase from the historical rate of 0.5%. This trend reflects broader global patterns and presents significant investment opportunities. However, panellists noted that meeting this demand will require substantial financial commitments. The energy transition itself is inflationary, requiring large-scale investment in key materials such as copper and lithium, supported by long-term mining projects and structured supply agreements.
In this geopolitical climate, investors emphasised that infrastructure investments are shaped by local and regional frameworks. Even amid rising global tensions, stable legal systems and enforceable contracts often play a decisive role in investment success.
Finally, there is a renewed focus on resilience, particularly through re-militarisation initiatives that may drive demand for energy, water, and waste infrastructure, as well as ports and airports. Germany’s plan to invest €500 billion was discussed as a potential boost for European infrastructure, especially if private investment joins forces with the public sector. Overall, the conference highlighted the dynamic nature of infrastructure and the significant opportunities and challenges ahead.