The surging demand for power

Global energy consumption has grown considerably over time, making it one of the largest sectors in today’s economy. The accelerating demand for reliable and resilient energy is creating attractive investment opportunities as we change how we produce, consume, and deliver energy worldwide. 

Infrastructure has been growing in popularity in recent years, with unlisted infrastructure raising US$87 billion of capital in 2024 as global megatrends reshape the landscape and drive long-term demand.1 One of the most significant structural trends is rising energy demand: global energy consumption has increased considerably over time, making energy one of the largest sectors in today’s economy,2 with consumers spending approximately US$10 trillion on the global energy sector in 2022.3 These top-down thematics are creating a constructive environment for infrastructure investment and underpinning the need for new and upgraded infrastructure worldwide.

Source: Our World in Data based on Vaclav Smil and BP Statistical Review of World Energy, last updated June 2024. Aggregate of biomass, coal, oil, gas, nuclear and renewables. Terawatt hours, abbreviated as TWh, is a unit of energy representing one trillion-watt hours.

In the coming decades, changing demographics, widespread electrification and rapid digitalisation may cause an even more dramatic increase in energy demand.4

Changing demographics

Global population increases, coupled with a rapidly growing middle class, is expected to substantially increase demand for electricity.5 The middle and upper class used ~99% of total power globally.6


 

Source: Our World In Data, ”Population Growth” 2023. Projections are based on the UN Medium Fertility Variant.

Electrification

We believe the trend to electrify products, services and industries will continue to accelerate. 

Swipe for more
 20232030s
Connected devices717 billion>30 billion
Heat pumps as % of total heating needs in buildings810%20%
Energy needed for digital currencies9130 TWh156 TWh
EV share of new car salesLess than 20%1050%11

There can be no guarantee that the sectors/products mentioned above fall within the investment mandate of the Fund. 

Powering the future

Powering the digital revolution demands a disproportionate amount of electricity.  Data centre energy usage has surpassed the total energy consumption of entire countries12 , and it is estimated to increase a further 160% due to demand from artificial intelligence (AI).13

Source: BloombergNEF and DC Byte data (2024). Data centre energy consumption through Q1 2024. Nation energy consumption levels are actual through 2022 and projected for 2023 and 2024. Altogether, data centres use more electricity than most countries. Only 16 nations, including the US and China, consume more.


We invest in energy infrastructure that powers our everyday lives. Finding practical solutions to respond to the surging demand for energy. 


147+ countries and 1175+ companies have committed to Net Zero operations by 2050.14  To meet targets, nearly the entire world’s energy infrastructure must be replaced with renewable sources at a cost of nearly $6.7 trillion per year.15 Tailwinds, including increased global demand for energy, energy security concerns, government investments, mandates and subsidies, corporate pledges and technological advances are accelerating demand for renewable energy infrastructure that can be deployed at scale. 

  • Turbine
  • Wind farms
  • Onshore
  • Offshore

Source: MAM Internal Analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only. 

  • Reliability, flexibility and resilience solutions, allowing for integration of renewables
  • Battery storage and distributed energy

Source: MAM Internal Analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only. 

  • Reduce, recycle, reuse waste, creating carbon neutral products and drive optimal use of materials
  • Specialised recycling and Waste-to-biofuels

Source: MAM Internal Analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only. 

  • Development of low-carbon and renewable fuels
  • Biofuels and sustainable aviation fuelds
  • Electric vehicles and charging infrastructure

Source: MAM Internal Analysis. Please note that the above examples within the infrastructure sector are being provided as indicative examples only. 

  1. Source: BCG “Infrastructure Strategy Report” (2025)

  2. Source: Science Direct, Rudy Kahsar, “Energy democracies for sustainable futures 2023”.

  3. Source: International Energy Agency, “World Energy Outlook 2024 “published 10/24.

  4. Represents opinions and beliefs of Macquarie as at October 2024 and should not be relied upon as a promise or representation as to past or future performance.

  5. US Energy Information Administration (EIA): “International Energy Outlook 2023 ” October 11, 2023

  6. Source: World Bank: Poverty and shared prosperity report

  7. Source: Exploding topics, “Number of IoT (2024)” February 19, 2024.

  8. Source: IEA.

  9. Source: Coindesk, “How much energy does bitcoin use.” August 2021.

  10. Source: IEA, Global EV Outlook 2024, “Trends in Electric Cars,” May 2024.

  11. Source: Goldman Sachs, “The Future of Four Wheels is All Electric,” February 16, 2024.

  12. Source: Vox Media, “AI already uses as much energy as a small country. It’s only the beginning.” March 28, 2024.

  13. Source: Goldman Sachs, “AI is poised to drive 160% increase in data centre power demand,” May 14, 2024.

  14. Zerotracker.net, accessed 25 September 2025.

  15. Bloomberg New Energy Outlook 2022, except electrified transport, which is from the Electric Vehicle Outlook 2021 Net-Zero Scenario. The Net-Zero Scenario target global net zero by 2050 in line with 1.77 degrees Celsius of warming. Investment includes electricity grids. There can be no guarantee that such forecast will be achieved.

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Macquarie Asset management is a leading global asset manager offering a diverse range of investment solutions, including real assets, real estate, and credit.

 

This information is a general description of Macquarie Asset management only. The views expressed in this website represent those of the relevant investment team and are subject to change. No information set out above constitutes advice, an advertisement, an invitation, a confirmation, an offer or a solicitation, to buy or sell any security or other financial product or to engage in any investment activity, or an offer of any banking or financial service. Some products and/or services mentioned on this website may not be suitable for you and may not be available in all jurisdictions.

 

Investing involves risk including the possible loss of principal. The investment capabilities described in this website involve risks due, among other things, to the nature of the underlying investments. All examples herein are for illustrative purposes only and there can be no assurance that any particular investment objective will be realized or any investment strategy seeking to achieve such objective will be successful. Past performance is not a reliable indication of future performance.

 

Before acting on any information, you should consider the appropriateness of it having regard to your particular objectives, financial situation and needs and seek advice.

 

Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this website is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia).  The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank.  Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities.  In addition, if this website relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.

 

Additional important information (including regional disclosures)

 

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