Phenix Capital: AI infrastructure high on the agenda of investors
Phenix Capital has published its yearly impact report on infrastructure.
Key Takeaways:
- 220% growth in number of funds since 2015
- 87.5% of the funds focus on SDG7
- 84% infrastructure funds are real assets
- 57% infrastructure funds focus on Europe
- 528 investor commitments to SDG7
Phenix Capital explains that while infrastructure technically falls under the purview of Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure in reality nearly every SDG has an infrastructure requirement.
Based on Phenix Capital's research, from a fund development perspective, Affordable and Clean Energy (SDG7), SDG9, and Climate Action (SDG13) are the most popular, respectively, while from an investor perspective the third most popular is Responsible Consumption & Production (SDG12).
As a driver for economic growth and essential for development, the majority of the infrastructure funds (84%) fall under Real Assets in the Phenix Capital Impact Fund Database, with 16% in the private debt category.
A year ago, the Infrastructure Impact Report focused on infrastructure across many of the SDGs, focusing on climate-related infrastructure in the thematic Deep Drive.
Today, according to Phenix Capital, the US with its $500 billion Stargate project, together with Europe’s €200 billion InvestAI partnership, France’s €109 billion in AI ventures, and China’s new $8.2 billion National AI Industry Investment Fund, AI infrastructure is becoming the infrastructure theme everyone is focusing on.
Green energy and climate resilient infrastructure are still on the agenda, as highlighted by Morningstar Sustainalytics recently, as are renewable-energy driven data centres, and AI-driven oil and gas exploration.