Digital Infrastructure: A Strategic Catalyst for Digitalization of the Economy and AI Adoption
Digital infrastructure is fast becoming one of the most critical enablers of modern economic development. From powering everyday communication and remote work to enabling the scale-up of artificial intelligence and cloud computing, digital infrastructure underpins the transformation of how societies and businesses operate. As data usage soars and global connectivity becomes indispensable, the foundational systems that make this possible (fiber networks, wireless towers, and data centers) are increasingly in the spotlight.
These assets are not only essential to the functioning of today’s digital economy but also represent potentially attractive long-term investment opportunities. Their cash flows tend to be stable and resilient, supported by high barriers to entry, long-duration contracts, and a structural imbalance between demand and supply, particularly in data centers, where low vacancies reflect mounting pressure on capacity.
Looking forward, several macro trends, including digitalization, artificial intelligence adoption, and geopolitical pushes for regional self-sufficiency—are driving sustained capital flows into this asset class.
At AltamarCAM, we have made significant investments in essential digital infrastructures, including fiber networks, telecom towers and data centers across Europe and the USA, benefiting from these solid fundamentals and ongoing secular growth.
Digital infrastructure comprises physical and virtual systems that enable data transmission, storage, and connectivity across the globe. These systems form the backbone of digital society, quietly powering everything from real-time logistics and cloud-based services to video conferencing and autonomous vehicles.
As demand for speed, reliability, and capacity grows exponentially, investment is pouring into three core areas of digital infrastructure:
- Fiber optic networks
- Wireless networks
- Data centers
Each of them plays a distinct but interconnected role in facilitating global digital activity.
Fixed Telecom Networks: The Fiber Revolution
Fiber optic networks are central to digital communication due to their high reliability, bandwidth, and low latency. Despite growing demand, penetration remains low in several developed markets such as the U.S., Germany, and Italy — pointing to significant growth potential.
Governments are also prioritizing fiber in national digital agendas, viewing it as a foundational asset for competitiveness and future-proof infrastructure. Combined with rising data usage, these trends are accelerating long-term investment in the sector.
Wireless Infrastructure: Scaling for a 5G World
Wireless networks, supported by towers, antennas, and distributed systems (DAS), are evolving rapidly to meet rising data consumption. The rollout of 5G technology is intensifying infrastructure demand, with leading telecom providers in the U.S. alone planning over $34 billion in annual investment. This trend is mirrored globally as mobile data becomes a cornerstone of daily life.
Data Centers: Powering the Cloud and AI Boom
The rise of cloud computing, artificial intelligence, and real-time data processing is driving unprecedented demand for data centers. These assets have become central to the digital economy, enabling everything from e-commerce to machine learning.
In the U.S., data center capacity is expected to double, while Europe forecasts a tripling in IT load by 2030. Vacancy rates in major markets are near historic lows, pushing rents up and prompting rapid expansion—often constrained by power availability and permitting delays.
At the same time, AI-driven workloads are reshaping infrastructure needs, favoring high-density and liquid-cooled environments, hence the worldwide 15% annual increase that is expected in power consumption for the next 5 years due to these assets. These shifts highlight the sector’s strategic relevance and explain why data centers remain a priority for institutional investors seeking long-term exposure to digital growth.
*Note: Past returns are not necessarily indicative of future results given that the current economic conditions are not comparable to prior conditions, which may not repeat in the future. There are no guarantees that the funds will have similar results as previous funds
A Sector Positioned for Structural Growth
The digital infrastructure sector is defined by its long-term contracts, stable operating models, and essential nature—features that offer predictable cash flows and low correlation with broader market cycles. At the same time, the sector is not without its challenges. Pressure on global supply chains for critical materials (such as copper and rare earths) and the sharp rise in energy consumption pose headwinds that must be addressed through innovation, regulatory coordination and “ESG sustainable” strategies.
Nonetheless, the long-term trajectory remains clear. As economies continue their digital transformation and general adoption of AI, infrastructure enabling that shift will remain a foundational investment theme. Digital infrastructure offers a unique combination of societal relevance, strong growth and financial stability, positioning it as a compelling asset to be invested in.
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