Investing at the Intersection
Listed infrastructure: the rise of the old economy
February 27, 2026 5 Minute Read Time
Overview
Author
Senior Director, Portfolio Strategist
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With the start of 2026, markets are in the midst of rotation, and disruption is afoot. Investors have diminished enthusiasm for large-cap technology companies—where capital expenditures can outpace returns—or for software companies that are potentially at risk of disintermediation from generative AI. After a decade of U.S. market dominance, global exposures are now prized for resilient growth at discounted valuations. Given these factors, we see listed infrastructure as compelling. Listed infrastructure can offer:
- Physical, old economy assets that are essential and insulated from disruption from generative AI.
- Physical, old economy assets that are supercharged by generative AI.
- Global exposures with strong income, accelerating growth and discounted valuations.
In this update, we review key points and include highlights from earnings reported so far in 2026.
Essential assets that are insulated from disruption
Listed infrastructure is built on tangible, physical assets—toll roads, water systems, power grids and communication networks. Infrastructure is not subject to the competitive churn of digital platforms or software models. The assets are often monopolistic or oligopolistic, operating under long-term contracts or regulatory frameworks that enable stable returns. Even in a new economy driven (and riven) by generative AI, infrastructure assets will remain. They have the potential to generate significant growth and cash flow for investors.
Notable examples from the current earnings season include:
Free cash flow from global toll roads:
Global toll roads with marquee assets are seeing significant momentum. In the first quarter of 2026, a large French toll road and long-term concession operator reported prior-period free cash flow of approximately 50% above consensus expectations. We believe the growth and inflation capture of global toll roads are underappreciated by investors. We see listed companies at compelling discounts to private market valuations.
Infrastructure benefitting from AI demand
Infrastructure is both insulated from generative AI and supercharged by it. The four largest U.S. tech companies are expected to spend over $600 billion on data infrastructure in 2026—a 60% increase from the prior year, which should continue to drive up demand for power and grid investment. As grid capacity and affordability challenges rise, we believe the adoption of long-term power auctions or iterative grid reviews can improve access to power and mitigate bill inflation for consumers. Utilities are well positioned, with the ability to raise investment levels and integrate rate structures that protect consumers. For the data centers themselves, we expect a shift from AI learning to AI inference (the use of real-world applications of generative AI) in 2026, which should be beneficial for public data center companies with large colocation facilities.
Notable examples from the current earnings season include:
Compelling utility growth:
A large midwestern utility, which expects earnings growth of 7-8% from 2026-2030, recently increased its investment budget by $1 billion as a major hyperscaler plans to add 8.4million square feet its data center campus. The investment will support 2.6GW of projected demand.
Global exposures at a discount
Despite expected growth of approximately 8% over the next several years and a dividend yield more than 3%, listed infrastructure remains attractively priced. As of year-end 2025, the asset class traded at a 20%+ discount to global equities, a sharp reversal from its historical premium. This valuation gap presents a compelling entry point for investors seeking global diversification and income.
Listed infrastructure’s relative valuations are driven not only by its North American constituents, but also its European and Asian holdings, which own and operate critical assets in diverse regulatory and economic environments. Several of these companies are seeing new growth driven by an increased focus within these countries on their own improved infrastructure or need for energy security. For investors looking to rebalance away from the U.S. and into global, incomegenerating assets, we see listed infrastructure as offering immediate access, liquidity and valuation support.
Compelling valuations
Infrastructure remains attractively valued relative to global equities.
EV/EBITDA | Global Infrastructure vs Global Equities
Relative Earnings Multiple | Global Infrastructure vs Global Equities
A compelling total return potential
With its earnings growth, dividends and discounted valuations, we expect listed infrastructure to offer the potential for a doubledigit annualized return over the next several years. At CBRE Investment Management, as we have for over a decade, we continue to manage listed infrastructure with an alignment to the private markets and the goal of consistent, strong risk-adjusted returns. As we witness old economy infrastructure assets rise above the challenges—and meet the opportunities—created by the new economy, we are excited for the potential of our strategies to benefit investors.