A Comprehensive Guide to Private Infrastructure

Ares Management

Research

32 Pages

Ares Management examines how private infrastructure has evolved from traditional utilities and transportation assets into a broader opportunity set tied to digitalization, electrification, and AI. The guide argues that a $106 trillion global infrastructure spending need through 2035, combined with government funding gaps, is creating a larger role for private capital across power, data centers, transportation, and digital networks.

Key Takeaways

Massive Capital Need: Global infrastructure spending requirements are estimated at $106 trillion through 2035, while private infrastructure deal volume expanded from $13 billion in 2009 to $413 billion in 2024.
AI Driven Demand: One AI query requires roughly 10x the processing power of a traditional search, while meeting 2030 U.S. power demand may require $2 trillion of investment.
Portfolio Diversification Benefits: Private infrastructure delivered approximately 9% annualized returns over 20 years, with a 3.1x higher Sharpe ratio than publicly traded infrastructure.
Sources: infraMetrics®, Proshares. Data as of Nov. 15, 2022.

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