December 2025
From a global perspective, we believe infrastructure could be on the brink of transformation, fueled by seismic shifts in energy, technology, and policy. From the race to modernize power grids and digital networks to the drive for resilient, sustainable cities, infrastructure investment may have the potential to redefine how the world connects, builds, and grows.
OUR TOP CATALYSTS FOR CHANGE
01 Power Shift Ahead
Our research shows that governments and companies are accelerating investment in renewable energy, battery storage, carbon capture, and grid upgrades to meet decarbonization goals. In response to rising electricity demand from electrification and artificial intelligence-driven data centers, utilities and infrastructure providers are expanding and modernizing networks. These long-dated projects could anchor multi-year growth in energy-linked infrastructure assets.
02 The Great Re-Route?
Manufacturing is shifting closer to end markets as companies and governments emphasize security, reliability, and strategic independence. New industrial corridors, logistics hubs, ports, and power infrastructure will likely be needed to support reshoring and near-shoring efforts. This theme connects directly to policy incentives, regional development, and private-public partnerships that may help drive physical-asset buildouts..
03 The Grid Meets Artificial Intelligence1
We see explosive growth in artificial intelligence (AI) computing and cloud services fueling demand for data centers, high-capacity fiber, and stable power supply. The resulting build-out could potentially require large investment in both digital and physical infrastructure. This convergence of technology and utilities is emerging as one of the fastest growing infrastructure trends globally.
04 Emerging Urbanization
Rapid population growth and urban expansion in emerging markets are creating vast needs for transport, water, sanitation, healthcare, and housing infrastructure. Development banks and sovereign investors are increasingly channeling capital into these regions. Addressing this infrastructure gap could provide higher-growth opportunities to manage geopolitical and regulatory complexity.
05 Policy Push
Public-sector spending and regulatory frameworks remain critical enablers of infrastructure investment. Governments across developed and emerging markets are expanding stimulus programs, streamlining permitting, and launching co-investment funds to attract private capital. We believe fiscal policy continuity—especially in the U.S., Europe, and Asia—could provide a powerful catalyst for potential large-scale infrastructure deployment in 2026.
06 Strong by Design
As extreme weather and environmental risks appear to rise, we believe nations are focusing on infrastructure resilience—reinforcing grids, transportation networks, and coastal defenses. Investments in adaptation, such as flood control and wildfire prevention, are seeing increased interest. These projects not only may help mitigate environmental risk but also have the potential to open new investment avenues in materials, engineering, and sustainable design.
Read our main Outlook here.
About Newton Investment Management
Newton is a multi-strategy, active manager within BNY Investments.
Endnotes
- The strategy discussed does not specifically include an Artificial Intelligence (AI) driven objective. The manager may evaluate a range of factors when evaluating investments, however, including how companies utilize artificial intelligence within their business operations and strategies. AI usage may not be considered for each individual investment and, where it is considered, other attributes of an investment may outweigh any AI usage considerations when making investment decisions. The way that AI usage considerations are assessed may vary depending on the asset class and strategy involved.
Important information
All investments involve risk including loss of principal. Certain investments involve greater or unique risks that should be considered along with the objectives, fees, and expenses before investing.
Past performance is no guarantee of future results.
This material has been provided for informational purposes only and should not be construed as investment advice or a recommendation of any particular investment product, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Prospective investors should consult a legal, tax or financial professional in order to determine whether any investment product, strategy or service is appropriate for their particular circumstances.
Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change. This information may contain projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or expectations will be achieved, and actual results may be significantly different from those shown here. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations. Information contained herein has been obtained from sources believed to be reliable but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
Statements are current as of the date of the material only. Any forward-looking statements speak only as of the date they are made, and are subject to numerous assumptions, risks, and uncertainties, which change over time. Actual results could differ materially from those anticipated in forward-looking statements. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment and past performance is no indication of future performance.
BNY Investments is the brand name for the investment management business of BNY and its investment firm affiliates worldwide. BNY is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally.
BNY Investments Newton is the name for a group of affiliated companies that provide investment management services under the trading name of ‘Newton’ or ‘Newton Investment Management’. Investment management services are provided in the United Kingdom by Newton Investment Management Ltd (NIM) and in the United States by Newton Investment Management North America LLC (NIMNA). All firms are indirect subsidiaries of The Bank of New York Mellon Corporation (‘BNY’).
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
© 2025 THE BANK OF NEW YORK MELLON CORPORATION
Distributor, 240 Greenwich Street, 9th Floor, New York, NY 10286.
MARK-845868-2025-11-25