Asia faces a massive US$26 trillion infrastructure investment challenge through 2030, with private capital playing a pivotal role in addressing it, according to a recent whitepaper.

And while over 90% of infrastructure funding in Asia, which is projected to account for 50% of global GDP by 2040, has historically come from public sources, private capital is becoming an essential driver of infrastructure development, particularly in high-growth sectors, such as renewable energy, digital connectivity and cross-border supply chains, finds the Unlocking Asia’s Infrastructure Potential whitepaper published by Asia-focused infrastructure investment fund manager Seraya Partners.

Energy transition, digitalization and regionalization, the paper points out, are the three megatrends driving new infrastructure investment opportunities across developed and emerging Asia, with an estimated US$1.7 trillion in annual funding required to sustain growth, modernize energy systems and enhance digital and regional connectivity.

Energy transition

The shift from fossil fuels to renewables, the paper highlights, is driving substantial investments in offshore wind, battery storage and grid modernization. Notably, private capital is driving investments in legacy assets transitioning to renewables, including coal-to-renewable repurposing and offshore wind projects.

Digitalization

Home to over 50% of the world’s internet users, Asia is experiencing surging demand for hyperscale data centres, fibre-optic networks and artificial intelligence ( AI )-driven computing infrastructure. Additionally, Chinese start-up DeepSeek’s advancements in lowering capital expenditure costs for AI, the paper suggests, can potentially drive new demand for AI infrastructure in the region.

Regionalization

Asia’s increasing economic integration, the paper adds, continues to fuel large-scale infrastructure investments. Meanwhile, Trump-era tariffs, semiconductor export controls and China’s ongoing decoupling from the US are reshaping supply chains and investment flows, introducing new layers of complexity for infrastructure investors.