Infrastructure

What you need to know

• Capital flows are shifting: Infrastructure M&A is transforming, with capital increasingly flowing towards data centres, digital infrastructure, defence assets, and transport decarbonisation.
• Data centres at record levels: Data centre and digital infrastructure M&A has reached unprecedented levels, driven by AI computing demand and data sovereignty requirements.
• Defence becomes a priority: Defence and security infrastructure is emerging as a high-priority investment theme, with governments and private capital accelerating spending amid evolving geopolitical risks.
• Transport back in focus: Transport infrastructure - including rail, shipping, and airports - faces renewed investment focus, shaped by global supply chain vulnerabilities and the drive towards decarbonisation.
  

Infrastructure - the M&A state of play

Infrastructure M&A is undergoing a fundamental shift in 2026. While core energy infrastructure is addressed in a dedicated section of this report, this article focuses on the broader infrastructure landscape – where data centres, digital infrastructure, defence assets, transportation, and climate adaptation investments are reshaping capital flows.

Global M&A overall reached a record US$3.16 trillion in H1 2026, up 44% year-on-year, with dealmaking in respect of infrastructure increasingly pivoting towards the physical infrastructure underpinning AI – including data centres, real estate, and cooling technologies. Despite the overall market growth, infrastructure M&A activity declined from the elevated levels recorded in the second half of 2025. Aggregate deal value decreased by approximately 25%, from US$25.10 billion in the second half of 2025 to US$18.90 billion in the first half of 2026, while deal volume declined by approximately 13%, from 285 to 249 deals. However, compared with the first half of 2025, aggregate deal value more than tripled, increasing by approximately 212%, while deal volume increased by approximately 4%.

This article examines some of the key sub-sectors driving this transformation and concludes with an outlook on the themes which we see as shaping global infrastructure M&A in 2027 and beyond.

Data centres: opportunity and opposition

Data centre M&A continues to command premium valuations globally, driven by AI adoption, cloud computing expansion, and data sovereignty requirements. Globally, 48 data centre transactions closed in H1 2026, representing an 85% increase year-on-year (Infralogic, M&A Trends Report 1H26). In APAC, digital infrastructure remains a standout theme, with over US$50 billion of assets currently being marketed – concentrated in Australia, South Korea, and Japan. Southeast Asia has become a focal point for AI companies and hyperscalers. In EMEA, data centres are expected to remain a target for investors into H2 2026 and beyond due to a compelling combination of demand growth, constrained supply and long-term investment opportunity. For example, in July 2026, Ashurst Perkins Coie advised Arcus Infrastructure Partners on the acquisition of 100% of Volta Data Centres, which currently operates as Verne’s UK data centre. This facility provides colocation and interconnection services to customers in the financial services, telecommunications, IT, and enterprise sectors.

The geopolitical dimension is also increasingly relevant. The ongoing US-China technology decoupling is accelerating data sovereignty requirements globally, creating distinct regional markets and driving demand for localised data infrastructure. Jurisdictions offering regulatory certainty and reliable energy supply are emerging as preferred locations for new capacity.

However, a notable shift has been emerging: public opposition to data centre development is growing. Concerns over massive energy consumption, water usage for cooling, and local environmental impact are creating planning and permitting challenges in key markets including Ireland, the Netherlands, and Germany. This creates both risk and opportunity – developers with sustainable, low-carbon solutions are commanding premium valuations. European regulatory frameworks (particularly the EU Energy Efficiency Directive) are creating a distinctly challenging environment.

Defence: a strategic imperative

Defence has emerged as one of the most significant investment themes of 2026. In Europe, governments are accelerating spending commitments following NATO targets and evolving geopolitical risks. EMEA recorded a record 111 defence sector transactions in H1 2026, with US$7.7 billion in disclosed deal value – of which 20 were sponsor-backed entry deals. Private capital is increasingly participating alongside government investment in areas including defence logistics, communications infrastructure, and dual-use assets.

Infrastructure plays a dual role in the defence sector – both as a strategic target requiring protection and as a critical enabler of military capability. This is driving M&A activity across communications networks, logistics facilities, and dual-use technologies. The United States’ geopolitical focus on the Indo-Pacific region is driving significant defence investment in the area, while European NATO members are prioritising strategic infrastructure and military mobility in response to evolving security concerns. This divergence, amongst other factors, is creating distinct regional M&A opportunities.

The European Defence Industrial Strategy is providing a further catalyst, with the European Commission actively promoting cross-border defence procurement and joint investment. Public-private partnership structures are playing an increasingly central role in defence infrastructure financing, offering institutional investors access to long-duration, government-backed assets with stable return profiles.

Transportation: global risks, shifting investments

Transportation infrastructure – rail, shipping, and airports – is experiencing renewed investor focus, shaped by global supply chain vulnerabilities and the decarbonisation imperative. EMEA transportation M&A surged 109% year-on-year in H1 2026. Geopolitical tensions, including the Iran conflict and disruption to the Strait of Hormuz, are prompting strategic reassessment of supply chain resilience worldwide.

Rail infrastructure investments are accelerating as a lower-carbon alternative to road and air freight. Airport and port infrastructure transactions are increasingly incorporating climate resilience considerations. Global transport M&A reached US$28.5 billion across 93 deals in H1 2026, up 24% year-on-year in value (Infralogic, M&A Trends Report 1H26). Notable transactions in which Ashurst Perkins Coie has been involved include advising leading port operator PSA on the acquisition of an intermodal logistics terminal in Padua, Italy; Sojitz Corporation on its acquisition of a 50% interest in UGL Limited’s transport business across Australia and New Zealand; Freightliner Group and their controlling shareholder Brookfield Infrastructure on the sale of Freightliner Intermodal Logistics, a leading rail freight operator in the United Kingdom, to CMA CGM Group; and the NZ Transport Agency Waka Kotahi on the NZ$3.649 billion Public Private Partnership for the Warkworth to Te Hana expressway.

The convergence of digital, energy and transport infrastructure is creating a new category of integrated assets that defy traditional sector boundaries.

The winners will be investors who combine market understanding with access to patient capital and the ability to navigate complex regulatory environments.