Inside Infrastructure: What's New in the Netherlands?

The Netherlands, a nation renowned for its innovation, strategic location, and progressive environmental policies, continues to be a dynamic hub for infrastructure development. The country’s ambitious climate goals, coupled with significant investment in digital connectivity and port logistics, positions it as an attractive market for both domestic and international investors. With a strong focus on the energy transition, particularly in offshore wind and hydrogen, alongside initiatives in smart mobility and circular economy, the Netherlands offers fertile ground for sustainable and impactful projects.

Hot Topics

1. Accelerating the energy transition with offshore wind and hydrogen: The Netherlands is at the forefront of Europe’s energy transition, with a strong focus on expanding its already substantial offshore wind capacity and developing a robust hydrogen economy. The government aims for 21 GW of offshore wind by 2030, supported by significant grid infrastructure upgrades and innovation in energy storage. This drive extends to hydrogen, with a national strategy to establish hydrogen production, import, and distribution infrastructure, positioning the Netherlands as a major hydrogen hub for Northwest Europe.
2. Digital infrastructure prowess: As a crucial gateway to Europe, the Netherlands boasts one of the most connected digital infrastructures globally. The growth of hyperscale data centres, extensive fibre optic networks, and strong digital connectivity (including 5G rollout) are paramount. Amsterdam and Rotterdam in particular remain key locations for data centre investments, driven by demand for cloud services, AI applications, and secure data storage (especially within Europe).
3. Sustainable port development and logistics: The Port of Rotterdam, Europe's largest port, is a cornerstone of the Dutch economy and a pioneer in sustainable logistics. Initiatives focus on decarbonising port operations, developing circular economy solutions, and enhancing multimodal transport connections to the rest of Europe. This includes investments in shore power, sustainable fuels, and digital logistics platforms, also creating opportunities for terminals and related assets.
4. Circular economy and urban innovation: The Netherlands is deeply committed to transitioning to a fully circular economy by 2050. This ambition heavily influences infrastructure development, promoting sustainable construction materials, waste-to-resource projects, and integrated urban planning that minimises environmental impact. Innovative projects in smart cities, green mobility, and climate-resilient infrastructure are gaining traction.

Latest Infrastructure Deals and Opportunities

1. Offshore wind farm investments: Large-scale offshore wind projects, such as those in the Hollandse Kust zones, regularly attract significant capital. Recent tenders and financial investment decisions continue to drive opportunities in construction, supply chain, and operational services for these mega-projects, such as the partnership entered into between RWE and TotalEnergies in relation to the development of the OranjeWind offshore wind project with a projected installed capacity of 795 MW. The Dutch government has set the goal of 21 GW installed capacity in 2030, requiring an additional 16 GW compared to 2023. While the Dutch government has in the last year delayed the tender process for two additional offshore wind sites citing deteriorating market conditions, it has recently launched a process for the 1 GW Nederwiek I-A offshore wind site in the North Sea.
2. Hydrogen production facilities: Several projects are underway or planned for large-scale green hydrogen production, often co-located with offshore wind farms or industrial clusters, and at times mandated as part of the approval process for offshore wind farms. These involve considerable investments in electrolyser capacity and associated infrastructure, creating opportunities for technology providers and industrial partners. The Dutch government has also incentivised green hydrogen infrastructure development through several public subsidies. It has been reported that parties like TotalEnergies and Air Liquide have been raising financing for green hydrogen projects in the Netherlands, while others like Macquarie-backed HyCC have announced plans for large-scale green hydrogen plant projects in Rotterdam.
3. Data centre expansion: Major tech companies, specialised data centre operators, and other investors continue to invest in the Dutch data centre sector, as demonstrated by the recent investment by PGGM in Penta Infra. These projects involve substantial capital outlay for construction, energy infrastructure, and advanced cooling solutions. Further bolt-ons and consolidation is expected in this sector. As regards opportunities, it has been reported that DWS has  an ongoing process regarding the proposed sale of its stake in data centre operator NorthC.
4. Grid reinforcement and other energy assets: TenneT, the national transmission system operator, is undertaking massive investment programs to reinforce the electricity grid, integrate renewable energy, and develop smart grid solutions. These projects include new high-voltage connections, cable laying, and substation upgrades across the country. There have also been a number of investments in battery storage and related assets, including by PGGM in the Sympower energy platform, and investments by parties in lithium-ion battery producers, solar and battery storage businesses, and EV charging platforms and operators.
5. Rail infrastructure upgrades: Investments in rail aim to enhance capacity, reliability, and sustainability. Projects include upgrades to freight corridors (e.g., Betuweroute) and (high-speed) passenger lines, as well as the development of digital signalling systems and electrification initiatives.
6. Port infrastructure: The Port of Rotterdam is continuously investing in digitalisation and automation technologies, including autonomous vessels, smart logistics platforms, and IoT integration, to improve efficiency, safety, and environmental performance. In addition, there have been and continue to be opportunities related to port terminals, such as the acquisition by Tepsa of tank storage and development facilities in Amsterdam and Rotterdam over the summer.
7. Private capital: Private capital continues to flow towards infrastructure. APG has announced that it is looking to double its current allocation of some €32bn to infrastructure assets, BB Capital is looking to shortly launch its first evergreen infrastructure fund of funds, a first close is expected this month of a $500 m climate debt fund managed by Dutch asset manager Climate Fund Managers, and CVC has announced further moves into the infrastructure asset space.
8. VodafoneZiggo tower sale: It has been reported that several parties are still reviewing the potential sale of VodafoneZiggo's - Vodafone’s and Liberty Global's Dutch telecoms joint venture - tower business. 

Legal and Regulatory Developments

1. National Climate Agreement: This agreement, already presented to the House of Representatives in 2019, sets ambitious targets for CO² reduction across all sectors of the economy (industry, electricity, built environment, agriculture, and mobility), guiding policy and regulatory frameworks for infrastructure development. It remains the primary driver for many energy transition projects.
2. Energy Act: A comprehensive overhaul of the existing electricity and gas legislation, the new Energy Act, enters into force on 1 January 2026 and aims to align Dutch law with EU directives, facilitate the integration of renewable energy, ensure security of supply, and enable the development of new energy carriers like hydrogen. It is aimed at facilitating the energy transition and will streamline permitting processes for energy infrastructure.
3. Environmental permitting and spatial planning: The new Environmental and Planning Act which came into effect in 2024, consolidates and simplifies various laws and regulations concerning spatial planning, building, environmental protection, and nature conservation. The goal is to speed up permitting processes for complex projects, including major infrastructure developments, by providing a more integrated and flexible regulatory framework, but has also come with some practical issues, for example in relation to obtaining environmental permits in relation to activities involving nitrogen deposition in protected nature reserves (Natura 2000).
4. National Hydrogen Programme: This programme provides a detailed roadmap for developing the Netherlands’ hydrogen economy, outlining policy support, infrastructure needs, and sustainability criteria for hydrogen production and use. It includes provisions for subsidies, legal frameworks for hydrogen networks, and market incentives, with the aim of realising 3 to 4 GW of electrolysis capacity by 2030.
5. Access to hydrogen terminals: In 2024, the Dutch Consumer and Markets Authority published guidelines related to third party access rights to hydrogen terminals. This is also relevant for upstream and downstream industries and related infrastructure such as terminals with ammonia cracking facilities.

And finally… Real Asset or Fake News?

Well done to those of you who sought out “search party” as the fictional use case last week. This week, as the Netherlands is a low-lying country with extensive experience in water management, we test your knowledge on some of its water-related infrastructure marvels. But which of these "facts" is actually fiction?

1. The Delta Works: This impressive series of construction works, including dams, locks, dykes, and storm surge barriers, was built to protect large areas of the Netherlands from the sea and is considered one of the seven greatest civil engineering achievements of the 20^th century.
2. Floating Cities: Due to rising sea levels, the Netherlands has launched a pioneering project to construct the world's first fully self-sufficient floating city, designed to house over 10,000 residents and feature its own renewable energy and waste management systems.
3. Artificial Islands for Energy: The Netherlands is planning to build large artificial islands in the North Sea to serve as central hubs for offshore wind farms, collecting electricity from multiple wind parks and distributing it to onshore grids, potentially for multiple European countries.
4. Land Reclamation for Agriculture: A significant portion of the Netherlands' arable land, known as 'polders', has been reclaimed from the sea or lakes through an extensive system of dykes, canals, and pumping stations, contributing substantially to its agricultural output.
5. World's Largest Storm Surge Barrier: The Maeslantkering, part of the Delta Works, is one of the world's largest movable storm surge barriers, designed to protect the Port of Rotterdam and surrounding areas from flooding, and is operated remotely.

If you think you have spotted the fiction amongst the facts, please feel free to reach out. We will publish the answer in our next post!