“Infrastructure is proving to be a resilient asset class, even in an increasing interest rate environment,” Anish Butani (pictured), managing director and head of infrastructure at investment consultancy who thinks that data centers are becoming more environmentally efficient, although there will be regions where deployment is delayed.

Butani's statement comes after New York-headquartered KKR announced the close of its £14.3 billion ($19 billion) Global Infrastructure Investors V fund last week. The fund, which covers private infrastructure and institutional, private wealth capital, is the largest infrastructure vehicle in the firm's history; it represents about £33 billion raised across its latest infrastructure strategies worldwide. The fund will target energy, digital infrastructure and industrial assets across North America and Western Europe, focusing on fiber networks, data centers and the energy transition.

Demand for long-term infrastructure capital continues to climb, even as the pool of investible, scaled opportunities remains constrained. KKR's infrastructure unit has grown from £9.5 billion in assets in 2019 to around £90 billion today, having completed more than 100 infrastructure investments since its founding in 2008.

KKR has pointed to digitalization, electrification, and industrial reshoring as the core themes driving deployment in North America. While in Europe the emphasis is on competitiveness, energy security and economic resilience, echoing Butani's views.

In conclusion, Butani remains optimistic about the outlook for infrastructure as an asset class; it has remained resilient in a higher inflation and interest rate environment, and increasing geopolitical tensions, making an important part of a diversified portfolio.