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The rise of infrastructure 2.0: How digitalisation and decarbonisation are shaping the future

Infrastructure is essential to the economy and our way of life. It ensures communities have reliable access to essential resources and services from water and energy, to transport, education, healthcare and communication. As the world continues to evolve at a rapid pace, Infrastructure 2.0 in the form of Digitalisation and Decarbonisation are two of the biggest themes of our generation that are shaping the future of infrastructure investment. Unlisted infrastructure managers have the privilege to make a significant impact and difference in these two themes for both investors and our greater society by investing in these sectors and leading their future direction.


The world is becoming increasingly digital and we need to ensure that our infrastructure can keep up. Digital infrastructure is the backbone of our modern society, enabling us to connect, communicate and work more efficiently than ever before. The exponential rise of digital technologies such as 5G, the Internet of Things (IoT), Artificial Intelligence (AI) and Big Data analytics has necessitated enormous investment in digital infrastructure in the form of fibre, data centres, towers and small cells. Focused efforts across the world to reduce the digital divide and prepare for a cloud-based interconnected society means that trillions of dollars will be required from both public and private funding sources to fund the required infrastructure.


The unlisted infrastructure sector is also leading the way in decarbonisation and renewable energy development. As the world becomes more conscious of the impact that we have on the environment, it is crucial that we invest in renewable energy and sustainable infrastructure. By investing in renewable energy projects such as wind farms, solar plants, electric charging infrastructure, smart meters, and battery technology, we can reduce our carbon footprint and sustain the planet for future generations.


Infrastructure 2.0 presents exciting opportunities for investment in the areas of digital infrastructure and decarbonisation. By investing in sustainable infrastructure that will shape the modern world, unlisted infrastructure investors like Igneo can drive sustainability outcomes, innovation and change in the infrastructure sector while achieving attractive financial returns for its investors.


Author: Jay Chong, CFA, Director, Igneo Infrastructure Partners


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