By Dr. James Tyrrell, Robin Martin and Miriam Uebel
Digital and clean power infrastructure are both expanding rapidly, driven by artificial intelligence (AI) adoption, cloud computing, and electrification. Our recent research paper explains why we believe these trends can create structural growth opportunities for investors and are accelerating convergence between these asset classes.
Digitalisation and decarbonisation are reshaping the global economy, fuelling demand for digital and clean power infrastructure. Independently, these assets aim to offer compelling prospects: rising cloud computing and AI adoption are boosting data centre power needs, while overall clean energy demand is rising due to the increased presence of data centres, electric vehicles, and wider electrification.
Our recent paper explores how these asset classes are converging both physically and financially. Physical convergence considers asset capabilities, constraints, and supply chain overlaps. Financial convergence, on the other hand, examines how shared drivers influence investment returns. While we approached the matter from an equity perspective, many considerations apply across both debt and equity. As the investible universe expands and exposure rises, we believe understanding this convergence becomes increasingly critical.
You can read the full paper here.
