Private Infrastructure Rebounds as AUM Reaches $1.6 Trillion

• Private infrastructure assets under management reached $1.6 trillion in the first half of 2025 and now represent 10% of all private market assets
• Fundraising rose almost 60% in 2025, setting a new record and recovering more strongly than other private asset classes
• Nearly three-quarters of capital raised in 2025 went to the top 50 infrastructure funds, with close to half going to the top five
• Digital infrastructure now represents almost 20% of portfolio companies, while data center demand and power constraints are reshaping investment priorities

BOSTON, March 24, 2026 /PRNewswire/ -- Boston Consulting Group's fifth annual report on private infrastructure investing and strategy, Infrastructure Strategy 2026: A Year of Increasing Scale and Diversification, shows the asset class regaining momentum, with assets under management reaching $1.6 trillion in the first half of 2025 and fundraising rising almost 60% over the year. As growth returns to the assets class: capital is concentrating in the largest platforms, while digital infrastructure and power-related themes are driving a growing share of activity.

The analysis spans fundraising, assets under management, deal activity, returns, and sector trends across private infrastructure. It shows fundraising rebounding more strongly than in other private asset classes, even as investors direct a growing share of commitments to the largest and most diversified managers.

"Private infrastructure has regained scale, but the shape of the market is changing," said Wilhelm Schmundt, a coauthor of the report. "Investors continue to back the asset class for stable, reliable returns while directing more capital to the largest managers."

Capital returns, but concentration intensifies

As fundraising recovered in 2025, limited partners directed almost three-quarters of capital to the largest 50 infrastructure funds, while the top five alone captured close to half. Investors also favored core-plus and value-add strategies, which together accounted for almost 70% of new funds raised, signaling a greater willingness to move up the risk curve in search of higher returns.

That rebound stands in contrast to some other private asset classes, where fundraising remains below prior peaks.

Digital infrastructure moves closer to the center of the market

Digital infrastructure is the only major sector to post considerable growth over the past five years and now accounts for almost 20% of all portfolio companies, up from 15% in 2020. Within that segment, deal activity is shifting toward data centers, which represented 41% of digital deals in 2025, up from 26% a year earlier.

Power availability and long grid-connection timelines are emerging as major constraints on data center development in key markets. As a result, expansion is moving beyond Tier 1 locations into Tier 2 and Tier 3 markets, as well as off-grid projects supported by dedicated power generation.

Renewables lose share as the energy mix broadens

In energy and environment, the number of deals increased from 176 to 207 in 2025, but the composition changed significantly. Processing and distribution rose to 50% of deals, up from about one-third in 2024, while conventional energy services increased to 18% from 10%. Over the same period, renewables fell to 22% of deals from 42%.

Traditional wind and solar projects are facing mounting pressure from higher costs, weaker capture prices, and changing political, financial, and regulatory support in many countries. At the same time, rising electricity demand and grid bottlenecks are increasing interest in conventional power, energy services, and related infrastructure tied to data center growth.

"One clear trend in 2025 is that digital infrastructure is increasingly inseparable from energy strategy," said Alex Wright, a coauthor of the report. "Power availability, grid connectivity, and integrated energy solutions are becoming central to how investors assess data centers and related infrastructure opportunities."

Download the publication here:
https://www.bcg.com/publications/2026/year-of-increasing-scale-and-diversification

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SOURCE Boston Consulting Group (BCG)