Inside Infrastructure: Outlook for Infrastructure and Energy in 2026 (Part I)

As we enter 2026, the infrastructure and energy landscape is evolving at remarkable speed. Geopolitical shifts, intensifying energy security concerns and the accelerating AI race are reshaping investment priorities and raising challenging questions for market participants.

In the AI‑fuelled sprint to build global data‑centre capacity, will the resurgence of nuclear energy and on‑site generation from more traditional sources help fill the looming power gap? How far will energy‑security policies reshape markets? And which sectors risk being left behind as capital continues to consolidate around scale and resilience?

To help make sense of these dynamics, we spoke with Freshfields partners across our global network for their perspectives on the forces shaping infrastructure and energy markets in 2026.

In Part I of our 2026 outlook, we highlight the key global themes, risks and opportunities our team expects to define the year ahead. Part II will then turn to specific jurisdictions and market hotspots, providing local insights into how these trends are likely to play out.

– Richard & Jessamy 

Data‑centre growth enters a new phase: a global capacity sprint

“2026 will mark the moment the data‑centre industry shifts from high growth to a full‑scale capacity sprint. Europe alone is on course to add nearly 100 gigawatts of capacity by 2030, while global infrastructure spending trends toward $7 trillion.

This next phase is defined not just by scale but by speed. The winners will be those who can deliver gigawatt‑scale campuses and AI‑ready networks fast enough to meet unprecedented inference demand. We are moving from constructing buildings to designing digital industrial estates - requiring new approaches to land strategy, financing and regulation.

This is the next great infrastructure cycle, and those who combine insight, execution and sustainability will define the year - and decade - ahead.”

– David Seymour, Partner, Real Estate

Infrastructure financing terms remain favourable, but lenders are cautious in select sectors

“We saw an uptick in deal flow in the second half of 2025, with a large volume of debt raised in the refinancing market - particularly across transport, leasing and logistics, and decarbonisation assets.

We expect this momentum to continue, with liquidity remaining strong due to an increasing participation from private credit funds. Back-leverage structures and holdco financings are likely to remain prominent.

Strong sponsors should also be able to continue pushing for greater flexibility in financing terms this year with an increasing convergence of terms with the leveraged finance market, as large volumes of capital look to be deployed. As the deal flow in the M&A market returns, we anticipate a higher volume of acquisition financing. 

However, certain asset classes - including fibre and renewables in jurisdictions with heightened regulatory uncertainty - will remain challenging for lenders.”

– Jenny McIvor, Partner, Energy & Infrastructure Finance

2026 could unlock the next wave of large‑scale nuclear investment

“2026 will be a year of accelerated growth in key nuclear markets, as governments increasingly integrate nuclear into their economic and industrial strategies. We are seeing a profound policy shift toward the provision of pro-active Government support to accelerate the development of both gigawatt-scale and SMR nuclear projects. 

Most significantly, the emergence of hybrid public-private investment structures is creating unprecedented investment opportunities for private investors, exemplified in 2025 by the UK’s £38bn public-private capital raise for Sizewell C, and the US Government’s $80bn commitment to a 10-reactor development partnership with Westinghouse. Building on this momentum, alongside a myriad of SMR developments globally, we predict that 2026 will see investor confidence in nuclear go… nuclear.”

– Vanessa Jakovich, Partner, Energy Transition and ESG

Renewables face headwinds - but adaptation is driving resilience

“The renewable‑energy sector is contending with significant headwinds from policy shifts and macroeconomic pressures in several jurisdictions, including the US. The downturn in offshore wind has been a stark reminder of the challenges inherent in large‑scale project development.

Yet we are also seeing resilience and adaptation across the sector. Solar‑plus‑storage solutions are gaining momentum in the US and MENA, driven by demand from green industrial projects, data centres and the need to manage grid stability. Investors are increasingly prioritising projects with mature offtake agreements and flexible financing structures.

In 2026, we expect a surge of strategic capital into assets that can demonstrate long‑term competitiveness - even amid policy uncertainty.”

– Melissa Raciti‑Knapp, Partner, Energy & Infrastructure

From generation to integration: grids, storage, and new models drive energy-transition investment

“Investors are further shifting their focus from simply building renewables to powering up the backbone of tomorrow’s energy system. In 2026, we expect strong momentum behind modernising and expanding transmission, grid, and flexibility infrastructure - critical for integrating unprecedented levels of clean power, digital demand, and new end-uses. 

Should the EU’s recently announced European Grids Package and the UK’s parallel initiatives deliver real reforms - such as simplified environmental permitting for grid upgrades - we anticipate a surge in investor appetite across the region, accelerating project buildout and investment decisions across the region. 

Complex financing structures and public‑sector support - including Export Credit Agencies and multilateral institutions - will continue to be essential for complex or cross‑border projects, helping deploy additional capital and ensuring alignment with long-term energy transition goals. Broadening the financing toolbox is essential to mobilise the capital required for global energy and infrastructure modernisation, industrial transition investments and decarbonisation.

While hard-to-abate sectors are slowly gaining traction, energy‑storage investment is set to grow following increased deployment in 2024 and 2025 and improvements in battery technology, particularly if grid connection challenges are addressed. In markets experiencing price volatility, storage operators may also capture attractive arbitrage opportunities.

Beyond power, the global shift toward circular‑economy models and improved energy efficiency is unlocking further opportunities in recycling, smart metering, waste‑to‑energy, urban district‑heating projects and energy as a service business models. The next wave of the transition will be shaped by how quickly capital and innovation move into these enabling layers.”

– Andreas Ruthemeyer, Partner, Energy & Infrastructure Finance

"Geopolitics will continue to drive investment in the critical mineral supply, with key markets seeking long term security of supply at each stage of the value chain to protect national and regional interests. 

Carbon capture as an asset class is becoming more attractive for both debt and equity, especially in Europe. Following projects within the successful UK cluster processes reaching financial close and GIP’s investment in Eni’s storage portfolio in 2025, we expect to see significant moves to deploy capital across capture, transport and storage assets at various stages of readiness from incumbents and new entrants. 

As optimism in certain energy transition asset classes and technologies wanes, and as coordination and mismatched incentive issues hinder the formation of viable value chains, we expect to see more exits from once promising development stage assets. 

Despite price and political uncertainty and challenges to net zero compliance, oil and gas will remain a key target asset class for ongoing investment and transaction activity."

– James Chapman, Partner, Energy, Transport & Infrastructure

In challenged markets, capital structures are being reassessed

“Certain corners of the infrastructure market face heightened stress, bringing restructuring into sharper focus. UK water remains central, with Thames Water expected to return to court in 2026 to complete its restructuring.

Meanwhile, alt‑nets across Europe are under scrutiny as operators reassess capital structures and operating models amid tougher conditions.

Against this backdrop of shifting geopolitical and regulatory pressures, resilience - and continued investment - in renewables will also remain a key focus area.”

– Lindsay Hingston, Partner, Restructuring & Insolvency

Increasing scrutiny on infrastructure assets by FDI regimes

“Planning deals around foreign direct investment (FDI) screening obligations will remain central to infrastructure this year, with energy, water, transport, telecoms, and data centres increasingly falling within scope as governments tighten controls. Unlike the US’s single CFIUS process, Europe’s fragmented screening landscape will demand jurisdiction specific strategies to navigate divergent scopes, thresholds and timelines. 

Intensified scrutiny of infrastructure sectors is also rising in Europe, from the UK’s proposals to broaden screening to water and third party data handling centres, to new regimes in Ireland, Greece and Bulgaria. Recent prohibitions and conditions illustrate this trend: Germany blocked MAN Energy Solutions’ sale of its gas turbine division in July 2024; Spain vetoed the Hungarian backed takeover of train manufacturer Talgo in August 2024; Czechia issued a prohibition in March 2025 against Emposat’s satellite ground station; UK imposed conditions in March 2025 in connection with TAQA’s investment in an electricity interconnector. Also in August 2024, CFIUS resolved an enforcement action against telecommunications company T-Mobile pursuant to material violations of a 2018 national security agreement, resulting in a $60 million penalty.

Infrastructure sector-specific FDI screening criteria will become increasingly important this year. Authorities will continue to focus on (amongst other factors) operational resilience and financial stability, assessing whether investors have the financial strength, management competence, and long-term commitment to maintain uninterrupted delivery of critical services. This may contrast with FDI screening in sensitive technology sectors, where the focus may be more on managing strategic dependencies and protecting critical knowledge assets.

Staying ahead of trends this year is therefore essential; see the Freshfields Foreign Investment Monitor for continued insights.”

– Susannah Prichard, Senior Associate, Antitrust, Competition & Trade

Conclusion

Overall, 2026 is poised to be a strong year for fast‑scaling sectors such as data centres and nuclear, both of which have captured increasing global confidence. Yet uncertainty persists across much of the broader infrastructure market. The future direction of renewable‑energy deployment and previously resilient sectors such as fibre remains more difficult to predict.

If one theme stands out, it is the need for continuous attention to a rapidly shifting landscape. Regulation and government intervention are playing a larger role across many markets, but where regulation intersects with volatile policy, stakeholders will need to stay alert to global developments in order to chart - and continuously refine - their strategic paths.

There are many possible trajectories for infrastructure in 2026, but the year ahead looks dynamic and full of opportunity. In Part II, we will explore how these themes are unfolding across key jurisdictions and highlight additional local trends shaping investment in the sector.