United StatesAI is dominating the investment conversation. Most of that attention is focused on a small group of technology companies building the platforms and applications behind it.
But those systems do not run on software alone.
Behind every AI model, cloud platform and digital service is a physical network of infrastructure; data centers, fiber and communication towers, that makes it all possible. This layer of the market is becoming increasingly important as part of the transition to a more sustainable global economy.
As digital activity expands and economies become more electrified, the need for efficient, reliable and scalable infrastructure continues to grow. The opportunity is not only in the applications driving demand, but in the systems that enable that demand to be delivered. These span everything from physical real estate, to energy generation and management, as well as data connectivity.
For financial advisors, this raises a practical question: how should portfolios reflect not just the applications of AI, but the infrastructure that supports it?
A surge in digital demand
The scale of digital activity is expanding quickly, and the systems behind it are being pushed to keep up.
Global electricity demand is now expected to grow at its fastest sustained pace in years, increasing by roughly 3.6% annually through the end of the decade.1 This is being driven by the rising use of electricity in industrial applications, as well as the electrification of transport amongst other things. However, a significant share of that growth is also being driven by data centers, which could account for roughly half of U.S. electricity demand increases this decade as AI adoption expands.2
The build out of data centres predates AI, with the shift to cloud computing beginning in earnest in the mid-2000s. AI turbocharged both data centre construction and their appetite for electricity. Efficient computing mean the rise in energy consumption has not been proportional – while data centre workload is up sevenfold since 2015, power demand has only doubled.3 Even so, electricity consumption from data centers is projected to grow by around 15% annually through 2030—more than four times faster than overall electricity demand.4
In practical terms, this is not just more usage. It is a shift in how intensive that usage has become, as AI models require more computing power, more storage, and more connectivity. This growth is taking place within a broader shift toward more electrified and interconnected systems. As economies rely more heavily on digital infrastructure, the efficiency and resilience of the networks supporting that demand becomes increasingly important.
As economies rely more heavily on digital infrastructure, the efficiency and resilience of the networks supporting that demand becomes increasingly important.
The physical layer of the digital economy
Behind the growth in AI and digital services is a set of physical systems that enable it to function at scale. These can be broadly grouped into three interconnected layers: power generation and electricity networks; energy management and cooling; and connectivity.
Power generation and electricity networks are central to meeting rising demand as data centers and industrial activity expand, with an increasing need for flexible and reliable supply.
Energy management and cooling support the buildout and operation of data centers, where maintaining precise operating conditions and managing energy use efficiently are critical as computing intensity increases.
Connectivity underpins the movement of data itself. Information must be stored, transmitted and delivered in real time, driving demand for fiber networks, communication towers and related infrastructure to support growing data volumes and low-latency requirements.
As demand grows across these layers, so does the need to expand and upgrade infrastructure. In the U.S., electricity consumption is expected to reach record highs in 2026 and 2027 as data center and industrial demand increase (U.S. Energy Information Administration; Reuters).5,6
Much of the current investment focus remains on large-cap technology companies, but infrastructure providers operate at a different point in the value chain. Their revenues are tied to underlying demand for connectivity, data processing and network capacity, as well as the long-term capital required to build and maintain these systems.
A different layer of the market
Digital infrastructure does not sit neatly within traditional sector definitions. It spans real assets, communications and utilities, while remaining closely tied to the growth of AI and cloud computing.
What differentiates these businesses is how they generate returns. Many operate with long-term contracts, regulated asset bases or essential service models that support more predictable cash flows and earnings visibility.
This creates a distinct role within a portfolio. Digital infrastructure offers exposure to structural growth driven by rising demand for electricity, data and connectivity, while also providing a level of resilience through its link to essential services and long-term capital investment.
As a result, it can complement core equity exposure by capturing a different layer of the digital economy, grounded in physical assets and durable demand rather than application-led growth alone.
The Impax Global Infrastructure ETF (BLDX) provides exposure to a global portfolio of infrastructure companies, including those involved in electricity networks, digital connectivity and communication systems. These businesses operate across areas of the market where long-term demand is driven by electrification, data growth and the need for more efficient and resilient infrastructure.
Within this universe, companies such as regulated utilities can offer a high degree of earnings visibility. With multi-decade investment plans and regulated asset bases, they are often able to forecast earnings growth and dividend payouts with a relatively high level of certainty. This can support a more defensive profile within a broader equity allocation.
Within a portfolio, BLDX can be considered as part of how investors reflect the full ecosystem supporting digital growth, not just the companies building applications, but also those enabling them. It provides exposure to structural growth trends, while incorporating businesses with more predictable cash flows and long-term demand drivers.
This reflects a broader view of infrastructure as the foundation of a more connected, electrified and increasingly efficient global economy. As with all equity investments, these exposures come with market, sector and interest rate risks and should be considered in the context of overall portfolio objectives.
AI may be the headline. But the infrastructure behind it is what allows it to scale.
Learn more about BLDX: BLDX ETF | Impax Global Sustainable Infrastructure ETF
1,2,4International Energy Agency (IEA), Electricity 2026 Outlook and Energy and AI analysis. https://www.iea.org
3Science, Vol. 367 Issue 6481 (2020), Recalibrating global data center energy-use estimates; Authors: Eric Masanet et al. https://www.science.org/doi/10.1126/science.aba3758
5U.S. Energy Information Administration (EIA), Short-Term Energy Outlook (STEO). https://www.eia.gov/outlooks/steo/
6Reuters, U.S. power demand to hit record highs in 2026 and 2027 as AI use surges. https://www.reuters.com/business/energy/us-power-use-beat-record-highs-2026-2027-ai-use-surges-eia-says-2026-03-10/
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