"Infrastructure is often grouped with long-term wealth preservation, as many assets are designed to operate for decades and can generate recurring cash flows. That reputation for durability holds up best when revenues are clearly defined, the costs are controllable, or at least transparent, and the operating environment is stable."
"Some assets generate revenue under regulated or long-term contracts, which can make cash flows more predictable than those of assets that rely solely on market prices or user demand. Many infrastructure businesses can pass inflation through to customers and maintain steady underlying demand. Therefore, they tend to preserve real, inflation-adjusted returns better than many other investments."
"Recently, digital infrastructure has become large and critical. UN Trade and Development reports that data centres captured more than one-fifth of global greenfield investments in 2025, demonstrating how quickly capital is concentrating in this segment."
Infrastructure encompasses long-lived assets like power networks, transport links, water systems, fiber, mobile towers, and data centers that generate recurring cash flows over decades. These assets preserve real, inflation-adjusted returns better than many investments when revenues are clearly defined, costs are controllable, and operating environments remain stable. Many infrastructure businesses operate under regulated or long-term contracts, enabling predictable cash flows and the ability to pass inflation to customers. Digital infrastructure has emerged as critical, with data centers capturing over one-fifth of global greenfield investments in 2025. While private infrastructure investments can lock up liquidity for years, listed infrastructure options reduce liquidity risks and provide diversification. The infrastructure definition continues expanding due to growing demand for digital connectivity and data storage.
#infrastructure-investment #inflation-adjusted-returns #digital-infrastructure #long-term-wealth-preservation #data-centers
Read at London Business News | Londonlovesbusiness.com
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