This article is part of:Sustainable Development Impact Meetings

• The new era of global competition will be over who finances and controls the grid and digital backbones of the economy.
• As nations race to build the backbones of the future economy, infrastructure finance has become a lever of influence, shaping access, costs and opportunities.
• With infrastructure key to how the energy and digital transition unfolds, financing it – strategically and systemically – is the next true frontier.

We are entering a new era of global competition – between countries and corporate buyers – over who finances and sets the rules for the grid and digital backbones of the economy.

Nations are racing to anchor high-voltage direct current corridors and undersea cables (e.g., trans-continental links and new cloud routes), while hyperscalers compete for long-tenor, 24/7 clean-power power purchase agreements and scarce interconnection slots. This isn’t just about producing more electrons; it’s about standardizing and operating the systems that make them usable, resilient and intelligent.

From continent-spanning grids to cloud hubs, infrastructure finance has become a lever of influence, shaping access, costs and opportunities. Those who invest strategically will set the terms of tomorrow’s system; while those who lag risk adapting to rules set elsewhere.

At the same time, soaring electricity demand from artificial intelligence (AI), automation and data-driven services is exposing the limits of today’s power systems.

The International Energy Agency (IEA) projects that power use from data centres, AI, and crypto alone could more than double to 1,000 TWh by 2026 – roughly Japan’s entire electricity demand. Meeting this surge sustainably will require massive upgrades in grid intelligence, flexibility and interoperability – none of which can happen without large-scale, forward-looking investment.

If infrastructure is the terrain on which the energy and digital transition unfolds, then financing it – strategically and systemically – is the next true frontier.

Grids are the quiet powerhouse

While headlines often spotlight AI, cloud computing or data centres, the real bottleneck and opportunity lies in the grid. Modern power systems are no longer just about generation. They are about flexibility, real-time coordination and managing flows across a diverse landscape of renewable generation, energy storage and industrial demand.

Yet financing is not keeping pace. Grid investment must nearly double by 2030 to more than $600 billion annually to build the infrastructure required for this shift. Without it, a significant share of clean energy projects could face delays, scale-backs or cancellations due to system constraints.

The risks are already visible. In the US and Europe, fragmented permitting regimes and shifting policy signals are weakening investor confidence. Recent offshore wind project cancellations highlight that without stable policy and integrated system planning, financing cannot flow at the pace or scale required. Meanwhile, other regions are advancing with more state-backed, integrated financing models that accelerate deployment.

This investment gap reflects a deeper challenge: today’s financing models remain too focused on isolated assets and short-term returns. What is needed is a pivot – from transactional finance to system-level investment strategies that unlock both resilience and growth.

Capital is consolidating and reshaping markets

Institutional investors are already pivoting towards a more integrated view of infrastructure. Sovereign wealth funds, asset managers and private equity firms are increasingly co-investing across the full spectrum of clean energy and digital infrastructure. They don’t just own windfarms; they also own the data centres they power. They are not just financing energy storage; they are deploying AI-based control systems to optimize it.

How is the World Economic Forum facilitating the transition to clean energy?

The Fostering Effective Energy Transition 2024 report showed that after a decade of progress, the global energy transition has plateaued amid the global energy crisis and geopolitical volatilities.

The World Economic Forum’s Centre for Energy and Materials is driving the transition to a “fit for 2050” energy system. It is a cross-industry platform building new coalitions and delivering insights required for a sustainable, secure and just energy future.

Learn more about our impact:

• Clean energy in emerging economies: We are advancing country-specific renewable energy finance solutions for four of the biggest emerging and developing economies: India, Brazil, Nigeria and Indonesia. In the latter, a new solar and battery initiative is bringing 15MW of clean energy to the East Sumba region – enough to power 4,000 homes and avoid 5.5KtCO₂ yearly emissions.
• Energy Transition Index: We have measured the progress of 120 countries on the performance of their energy systems, enabling policymakers and businesses to identify the necessary actions for the energy transition.
• Mining and metals blockchain: We released a proof of concept to trace emissions across the value chain using blockchain technology, helping accelerate global action for country-specific financing solutions.
• Clean power and electrification: We are accelerating the adoption of clean power and electric solutions in the next decade to help increase clean energy consumption threefold by 2030.

Want to know more about our centre’s impact or get involved? Contact us.

From physical networks to digital platforms, the same financial actors are building and controlling the physical backbone of the digital economy. Data centre and cloud operators like Microsoft and Google have signed 20-year renewable power purchase agreements (PPAs) to secure low-carbon energy for their data operations – effectively locking in long-term control over both energy procurement and pricing. In parallel, firms like Brookfield and BlackRock are building cross-sector infrastructure portfolios, financing both renewable generation and the digital infrastructure it powers.

In a world defined by AI, hyperscale computing and decentralized energy systems, the race is no longer just for clean energy – it is for control over infrastructure.

A new investment playbook

Finance must evolve to match the complexity of modern infrastructure systems. The old model of siloed, asset-specific investment is giving way to a more integrated, system-level approach that recognizes the interdependencies across the value chain.

This means prioritizing high-impact infrastructure such as smart grids, long-duration storage, digital platforms and clean energy hubs and assessing risk not just by asset class, but by how assets function within broader energy ecosystems.

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Financial innovation must channel capital towards underfunded but critical infrastructure by blending public and private finance, aligning incentives and lowering barriers to entry for institutional investors. The World Bank estimates that every $1 invested in resilient infrastructure yields $4 in avoided costs from climate-related disruption.

Today’s monetary environment adds urgency. Liquidity is abundant, but without dedicated vehicles and de-risking mechanisms, it risks inflating financial assets rather than financing the grids and storage urgently needed. Redirecting this capital is a generational opportunity.

Strategic collaboration among financiers, developers, regulators and public institutions is essential to shift from fragmented deals to coordinated, system-driven investment. The path will differ by region, but the goal is the same: flexible frameworks that reflect local realities while giving global investors the confidence to scale.

What leaders need to ask now

As infrastructure becomes the strategic terrain of the 21st century, financial and policy leaders must confront four fundamental questions:

1. Are we prepared to set policies and standards that ensure open access and prevent concentration as digital and energy infrastructure converge?

Regulation and capital allocation should reflect the co-dependence of data and power flows.

2. What risks arise if infrastructure ownership continues to concentrate in the hands of a few?

Without appropriate safeguards, capital concentration could distort access, pricing and innovation.

3. How can financing models evolve to deliver broad societal benefit, not just monopolistic advantage?

Financial innovation must go hand-in-hand with inclusive governance and long-term societal value.

4. What role should public institutions play?

The risk is not just capacity shortfalls, but ownership and stewardship of standards and access. The financiers of tomorrow’s infrastructure will shape costs, access, and interdependencies for decades to come.

The next chapter of the energy transition won’t be won by megawatts alone, but by how we finance, set standards, and integrate the infrastructure that makes them useful.

The convergence is already happening. The playbook is evolving. The time to act strategically, collaboratively and systemically is now.