- 70% of finance professionals expect infrastructure to drive the strongest growth, followed by renewables (48%) and TMT (43%).
- 53% now view private equity as a primary source of equity funding, signaling a major shift in capital dynamics.
- 80% cite KYC requirements as the top execution challenge amid rising deal complexity.
Global project finance is entering a transformative era, driven by soaring demand for energy capacity, accelerated digitalization and large-scale infrastructure upgrades, reshaping investment priorities worldwide. These insights come from new research commissioned by CSC, based on responses from 200 project finance professionals, revealing a market shifting toward more complex, capital-intensive projects and a greater reliance on private capital.
CSC’s latest report, Project Finance at an Inflection Point: Adapting to New Realities1, reveals a sector that is rapidly expanding in both scale and complexity, driven by capital increasingly targeting long-term, strategically critical assets.
Infrastructure emerged as the strongest area for future growth, identified by 70% of respondents, followed by renewables (48%), and technology, media, and telecommunications (TMT) with 43%. Within renewables, wind tops expectations at 50%, while renewable natural gas and green hydrogen each stand at 41%, underscoring the accelerating momentum of energy transition technologies. Regionally, Europe leads the global outlook, with 39% of respondents anticipating significant growth over the next three years, followed by the U.K. (35%), Asia Pacific (32%), and North America (31%), reflecting a broadly diversified global investment pipeline.
Surging power consumption, driven largely by data centers supporting artificial intelligence and rapid digitalization, is reshaping investment priorities. Energy, TMT, transportation and social infrastructure, along with critical minerals, are poised to anchor the next wave of project finance activity.
“AI will likely drive an unprecedented surge in project financing, particularly for data centers and associated infrastructure,” said Christian Oakley-White, managing director and Head of Project Finance at CSC. “As data center usage shifts from cloud services to generative AI, the requirements for computing power, energy, and financing will grow exponentially. Unlike cloud infrastructure, which was largely funded through Big Tech’s internal cashflows, the estimated $1.5 trillion gap created by AI’s capacity demands will require a far broader investor base and financing structures—from private equity and sovereign wealth funds to bank loans, public debt markets, and private credit.”
Financing sources are already diversifying. More than half of respondents (53%) now identify private equity as a primary source of equity funding alongside infrastructure funds and development finance institutions, while 38% point to private credit as an increasingly important contributor. On the debt side, private debt (45%) is closely aligned with infrastructure platforms (48%) as well as both local (45%) and international (42%) syndicated loans.
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