Hard assets, soft power

In a fractured, multipolar world defined by strategic rivalries, infrastructure has become a critical lever for nations to project soft power – through energy security, technological leadership and supply chain dominance.

This strategic imperative has grown even stronger when combined with themes such as artificial intelligence (AI) adoption, decarbonization and deglobalization. As a result, sentiment toward infrastructure has shifted decisively positive in 2025. Fundraising reached a new record, as the asset class offers investors a way to gain exposure to long-term secular tailwinds while remaining a safe haven amid market volatility.

However, beneath this bullish narrative lies deep unease. At the geopolitical level, tensions are rising as the old world order breaks down, with rivalries increasing – even among traditional allies. At the societal level, ordinary citizens increasingly question whether governments, which they distrust more than ever, can shield them from today’s forces. At the investment level, the hype around new technologies such as AI is raising bubble concerns. Ultimately, soft power cannot endure without social stability and trust in our institutions.

In our 8th annual infrastructure outlook, we argue that the case for infrastructure has become existential – not only does it represent the most strategic path for countries to build soft power, it is also critical for maintaining social cohesion. We also discuss the macro environment for infrastructure, assess the risks of an AI bubble and highlight investment considerations across different sectors.