Renewable Energy and Data Centres Lead Infrastructure Investment Shifts

A UBS report highlights renewable energy and data centers as top infrastructure investments, driven by trends like decarbonization and AI. While traditional utilities lag in sentiment, sectors such as conventional electricity display high growth. Overall, infrastructure investments show positive earnings projections.

A recent report by UBS indicates that renewable energy and data centers are currently the most promising investment opportunities within the infrastructure sector.

These sectors align with global trends like decarbonization and rising AI infrastructure needs, thereby attracting substantial investor interest. In contrast, traditional sectors, including utilities and waste management, rank lower in investor favor.

However, analyzing fundamental data such as earnings growth shows a healthier outlook across the board, with conventional electricity leading due to AI's energy demands. The report anticipates strong earnings growth across all sectors, suggesting a positive infrastructure investment climate over the next year.

(With inputs from agencies.)