Delivering the physical infrastructure that serves as the backbone of our new digital ecosystem
Digitisation is coursing ahead.
Although already underway pre-pandemic, Covid-19 immediately served as an tremendous accelerant, driving us all online. We are now on the brink of a fourth industrial revolution which will likely fundamentally change the way we live, work and play, across the globe.
Digital dynamics are impacting how markets operate: with cloud computing, 5G, ecommerce, AI & Robotics, IoT driving further disruption and exponential growth. The connectivity, computing and data infrastructure that enables these technologies, connecting data centres to users and to each other, is as important to today’s economy as utilities like water or electricity.
The world is seeing increasing demand for speed, reliability and accessibility of data and this is consequently driving growth in the critical infrastructure needed to underpin these technologies.
Data Centres, Cell Towers, Cloud Computing Networks, Logistics Facilities, Storage Warehouses, Fibre Optic Cables and Distribution Warehouses are in need more than ever before. The critical infrastructure to support our increasingly connected world is more vital today than ever.
McKinsey estimates total annual infrastructure capital expenditure of $0.6trn until 2035.[1]
Megatrends, from Cloud Computing to AI, rely on vital real estate and infrastructure to be able to develop and with the continued trend of increased demand, there is a huge gap between today’s infrastructure and the amount required by the end of this decade.
[1] McKinsey, 2021.
Investors looking for a differentiated approach to thematic investing, may benefit from targeted exposure to companies at the intersection of thematic investing and real estate. This could potentially offer investors a more defensive return profile to thematic investing by targeting high quality disruptive real estate companies that own the infrastructure vital to the digital world. Real Estate companies also have a long history of helping investors hedge against inflation, with property values that tend to rise with the overall price environment, plus the potential for growing cash flows driven by rental increases.
DIGITALISATION
The investment case for disruptive real estate aims to shed light on how it provides the critical infrastructure to accelerating digital growth.
DIVERSIFICATION
Investors can gain access to the intersection of thematic investing and real estate. Providing investors with targeted and diversified exposure to real estate companies that own the infrastructure vital to the future economy.
MEGATRENDS
Megatrends like cloud computing, 5G, ecommerce, AI & Robotics, and IoT are shaping our future world. The connectivity, computing and data infrastructure that enables these technologies is arguably more important to today’s economy than ever before.
“While COVID has forced businesses to innovate in many ways, by both expanding existing and introducing new digital services, the infrastructure underpinning these services must keep pace.”
Claire Macland, Senior Vice President of Marketing, Equinix
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