Introduction
Infrastructure fundraising has significantly slowed in the first half of 2026, particularly compared to the record-high levels of 2025. However, investor sentiment remains strong as the asset class continues to evolve and new pockets of opportunities emerge. A number of mega funds remain in the market for large volumes of capital that are expected to come through in H2.
AI remains a major structural driver. Demand for processing capacity continues to support data center construction, while pressure on electricity grids is bringing digital infrastructure and power generation closer together. Traditional energy and utilities strategies consequently raised more capital than energy-transition and renewables funds in H1.
At a time of continued liquidity constraints, investors are also increasingly keen to consider allocation to infrastructure debt. While equity strategies remain dominant in the fundraising landscape, infrastructure debt attracted nearly 40% more capital in H1 year-on-year.
Liquidity constraints are also reshaping the market. Continuation vehicles are becoming an increasingly important route for managers seeking to retain high-growth assets while providing liquidity to investors, with single-asset structures dominating recent activity.
The Southern European market also continues to grow as new managers emerge and established firms consolidate. Continuation funds seem like a favorite route for some of these managers to enter the infrastructure market.
Fundraising slows, but large closes to come in H2
Global infrastructure fundraising fell to a record-ow $43.3 billion in H1 2026, following the record $250 billion raised in 2025, including co-investments.
A total of 31 closed-end funds reached final close globally during the first six months of the year. Most of the capital – $30.6 billion, or 71% – was raised in Q1. Activity then dropped to $12.7 billion across 10 funds in Q2.
Despite the slowdown, at least three mega-funds currently in market are expected to close during H2. These include ISQ Global Infrastructure Fund IV, which is targeting $15 billion and has raised $10 billion; and Stonepeak Infrastructure Fund V, which is also targeting $15 billion and has raised $10bn.
Although geopolitical and macroeconomic conditions remain uncertain, infrastructure is likely to continue attracting allocations as a defensive, income-generating asset class.
Allocators raise infrastructure targets
Among the allocators tracked by us, several have introduced or increased their infrastructure targets in 2026. Some are using the asset class to reduce portfolio volatility and overall risk.
Others are pursuing opportunities outside the AI buildout, including communications infrastructure such as cell towers. This does not necessarily reflect an aversion to the AI theme; many already have significant data center exposure through their public markets portfolios.
PSP Investments and Ohio SERS accounted for $3 billion of the $3.6 billion implied increase in infrastructure target capacity across the 10 tracked allocators.
AI demand fuels data center construction
Infrastructure funds focused on AI and data centers continue to grow in popularity. Managers are launching vehicles to capitalize on the wave of construction driven by rising demand for AI processing capacity.
NVIDIA has partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR on AI compute financing platforms seeking more than $500 billion of third-party capital.
The rapid buildout has intensified pressure on aging electricity grids, with some projects taking years to secure a connection. Despite these constraints, a record 726 data centers were constructed in 2024. A further 632 were constructed in 2025, the second-highest annual total in the series.
Power joins the AI buildout
The growth of AI is generating unprecedented demand for electricity, with European data center consumption expected to increase by more than 50% between 2025 and 2030.
This is creating opportunities for digital infrastructure and power generation to converge. DigitalBridge’s acquisition of ArcLight Capital Partners brings expertise across both areas onto a single platform.
As demand grows, investors and managers are reassessing traditional energy and utilities alongside energy-transition assets. With Intelligence data shows that energy and utilities strategies raised $7.5 billion in H1 2026, ahead of the $6.4 billion secured by energy-transition and renewables strategies.
Investors increasingly view traditional power sources and transmission assets as essential components of the data center growth story, particularly in the near term. Investor discussions around nuclear energy are also increasing. Although this interest has yet to translate into substantial allocations, it is emerging as another potential power solution for data centers.
Infrastructure debt offers a volatility buffer
At a time of persistent liquidity constraints, infrastructure debt can offer protection from global volatility through steady, often inflation-linked cash flows.
Although equity continued to dominate infrastructure fundraising in H1 2026, dedicated debt strategies raised $4.8 billion, 37% more than the $3.5 billion raised in H1 2025.
The infrastructure financing market is becoming more complex and increasingly requires bespoke structures that banks cannot always provide. This gives infrastructure debt managers scope to take a larger role.
Investment consulting firm NEPC has identified infrastructure debt as an opportunity for several of its US pension clients, citing the reliable current yields available. CalSTRS’ recent $2bn strategic partnership with Nuveen could encourage further interest, particularly among smaller public pension peers.
Insurers are another source of demand, attracted by the resilience and diversification infrastructure debt can provide as they increase private markets exposure within their general account portfolios. Debt represented 13.1% of investor strategy mentions in H1 2026, up from 11.6% in 2025.
Continuation funds gain ground
The GP-led infrastructure secondaries market continues to grow as continuation vehicles become an increasingly popular way to retain high-growth assets while providing much-needed liquidity to investors. A slower M&A market has encouraged mid-market managers to use single and multi-asset vehicles as underlying funds approach their exit phase.
In March, Quaero Capital closed a continuation vehicle backed by Hamilton Lane and HarbourVest. The transaction consolidated five European water assets into one platform before returning it to market at a significant premium.
Transport accounted for six of the 15 tracked vehicles, followed by energy and renewables with five. Single-asset structures represented 11 of the 15 vehicles. Notable multi-asset transactions include Meridiam’s North American CV and European Core Fund, with reported sizes of $4 billion and €2.2 billion, respectively.
Southern European managers continue to thrive
New managers continue to emerge across Southern Europe as infrastructure markets mature in Italy, Spain and Greece. Consolidation in Italy is another sign of a developing market in which managers are beginning to scale.
Rome-based Green Arrow Capital acquired DeA Capital Alternative Funds in May, broadening its platform across private equity, energy, digital infrastructure, private credit, special situations, nonperforming loans, client solutions and real estate.
Continuation funds are also becoming a route into infrastructure fundraising for first-time managers. Italian manager Finint Investments is preparing to launch its first broadly marketed institutional infrastructure fund after making significant progress on a €500 million continuation vehicle centered on Venice Airport.
In summer 2025, Spanish manager Serena Industrial Partners increased the target for its second sustainable fund by 20% to €300 million. It has since announced the Serena Bellanova fund, designed to strengthen its position in Paris-Beauvais Airport.
Methodology
This report draws on proprietary With Intelligence by S&P Global data covering infrastructure fundraising, fund closes, investor intentions, allocation targets, sector preferences, infrastructure debt, continuation vehicles and manager activity, alongside S&P Global data on data center construction. Figures primarily reflect data available through H1 2026.
With Intelligence is part of S&P Global, delivering end-toend coverage across the alternatives marketplace. With Intelligence’s proprietary data spans a uniquely comprehensive view of private market activity and relationships, including robust, direct-from-investor allocation data and benchmarking capabilities. We are here to help you leverage comprehensive, connected and actionable private markets intelligence.
