Receding inflation and an end to monetary policy tightening created a more constructive environment for both deal activity and asset valuations as the year progressed.
The Infrastructure Department's strong capital position and flexible investment strategy enabled it to capitalise on market dislocations, while continuing to generate stable returns from core strategic positions aligned with long-term, thematic trends.
In 2024, the Department continued to seek out opportunities aligned with global trends, including growth in emerging market economies. In transportation, for example, it invested $750 million into India’s GMR Airports and participated in a follow-on investment in toll roads in Sumatra, Indonesia.
Another key theme has been the rising demand for electricity, particularly in the U.S., where consumption is projected to grow 3% annually until 2030. This growth is being driven by the proliferation of AI data centres, greater adoption of electric vehicles, and industrial electrification. Reflecting this, the Infrastructure team agreed to invest $500 million in AlphaGen, an 11 gigawatt power infrastructure platform in the U.S.
Similarly, the Infrastructure Department continued to expand its exposure to data centres and digital infrastructure, capitalising on the rapid growth of digital communications and AI. In line with this theme, the Department finalised the acquisition of a 40% stake in Landmark Dividend, a company specialising in the acquisition and development of real estate and infrastructure across digital infrastructure, wireless communication, outdoor advertising and renewable power generation.
As in 2023, the Department pursued selective opportunities in private credit, as traditional lenders continued to retreat due to tighter financing conditions. It also provided liquidity by participating in secondary transactions.
Meanwhile, the Infrastructure team took advantage of strong equity markets to crystallise some of its gains in listed infrastructure assets.
On an operational level, the Department continued to expand its headcount and refine its organisational structure and work processes. It also worked to broaden its industry relationships and explore opportunities for collaboration in key growth areas.
As part of these efforts, it hosted the inaugural ADIA Infrastructure Forum in Abu Dhabi. This two-day event brought together global industry leaders to discuss how changes to the energy generation mix, supply chains, demographics and AI are influencing the future of infrastructure investment.
In early 2025, overall deal activity across the infrastructure sector remains subdued, although there are emerging signs of increased activity. The Department anticipates favourable conditions for both capital deployment and rotation of mature assets, provided monetary policy remains stable and trade tensions dissipate as the year progresses.
