Raj Rao, President and Chief Operating Officer of BlackRock's subsidiary Global Infrastructure Partners (GIP), stated on Wednesday that over the next 10 to 15 years, global infrastructure investment will present an opportunity exceeding $100 trillion, with more than half of that spending likely directed toward energy and power-related projects.
Speaking at the New Economy Forum in New Delhi, Rao said the scale of this opportunity equates to approximately $3 trillion to $4 trillion annually, with funding expected to come from private capital, governments, and public financing markets.
GIP is a subsidiary of BlackRock, managing assets exceeding $200 billion, with a focus on energy, power, and digital infrastructure. In recent years, as governments and companies have poured massive investments into data centers, power grids, and energy transition sectors, GIP's growth reflects a broad surge in investor demand for infrastructure.
Rao stated: "You need a massive amount of new-build projects, which involves trillions of dollars. In my view, this ultimately has to come from private capital. But for private capital to flow in, you need the right regulation, risk controls, and technology."
Rao said the infrastructure asset class barely existed 20 years ago and has now grown to approximately $1.5 trillion. The rise of digital infrastructure construction over the past four to five years has significantly increased global electricity demand. U.S. electricity demand is expected to grow 2-3% over the next five years, while emerging economies like India also require energy. Some of the supply could come from nuclear power, which is crucial for decarbonization. However, Rao said that to boost investor interest in nuclear energy, projects need to be executed with faster delivery timelines.
Rao stated that GIP "continues to invest heavily in U.S., European, and Asian markets" because these markets offer higher risk-adjusted returns.
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