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2025 Infrastructure Market Outlook

December 23, 2024

Portfolio Manager Nick Langley offers his outlook for global infrastructure in 2025, driven by robust growth in the U.S., where electricity demand growth, particularly from data centers, is creating opportunities. At the same time, there is some policy uncertainty in the U.S. He also explores how European utilities are increasing their capex, and U.K. water utilities should benefit from an improving regulatory environment.

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AI, Reshoring Drive Power Demand
Global Infrastructure Value 3Q25: Reshoring and AI-focused data centers are requiring significant buildout of energy infrastructure, in particular for U.S. electric and gas utilities.
Data Center Tailwinds Drive Steady Infrastructure Gains
Global Infrastructure Income 3Q25: U.S. utilities, renewables and North American natural gas and pipelines performed well, benefiting from elevated demand for power to support AI-focused data centers.
Infrastructure in the Rapidly Changing Policy Landscape
Accelerating policy-driven investment and AI-driven data center growth are unlocking a multi-decade growth opportunity for listed utilities globally.
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Global Infrastructure Income 2Q25: Listed infrastructure was resilient during the market volatility in April, strongly outperforming the broader market, and remained steady through May and June while equities recovered from the selloff.
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  • Past performance is no guarantee of future results. Copyright © 2024 ClearBridge Investments. All opinions and data included in this commentary are as of the publication date and are subject to change. The opinions and views expressed herein are of the author and may differ from other portfolio managers or the firm as a whole, and are not intended to be a forecast of future events, a guarantee of future results or investment advice. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Neither ClearBridge Investments, LLC  nor its information providers are responsible for any damages or losses arising from any use of this information.

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