At the Private Placements Industry Forum 2026, Hannah Schofield, Managing Director at DC Advisory, delved into the evolving US infrastructure investment landscape. She shared insights on how macro-economic shifts, the rise of AI-powered data centres, and new private placement strategies are driving transformation in this trillion-dollar market.
The trillion-dollar shift in US infrastructure investment
The trillion-dollar shift in US infrastructure investment is being shaped by a combination of economic realignments and the surging demand for advanced technologies. According to Hannah, these factors are not only driving innovation in investment approaches but also unlocking significant opportunities in the private placement market, particularly in the burgeoning sector of AI-driven data centres.
Impact of macro environment on deal appetite
Hannah highlighted how the current macro-economic environment is influencing deal appetite and risk tolerance. While underwriting discipline remains strong, investors are prioritising downside protection and reducing leverage to ensure robust investment theses. Despite a slower M&A market in 2025, 2026 is expected to see a resurgence in activity, with a robust pipeline of opportunities on the horizon.
Geopolitical uncertainties and cross-border investments
Geopolitical uncertainties continue to shape cross-border investment strategies. Hannah emphasised that while uncertainty is inevitable, stability is key to unlocking opportunities. With the easing of tariffs and a quieter geopolitical landscape, the US is poised for increased M&A activity and financing opportunities in 2026.
The rise of AI-driven data centres
Data centres, fuelled by the rapid adoption of AI, represent a trillion-dollar investment opportunity. However, Hannah stressed that power availability is the critical factor determining success in this sector. Behind-the-grid solutions, such as combined cycle gas turbines and offshoots of existing gas pipelines, are becoming essential to meet the growing demand for power and ensure the viability of data centre projects.
Capital deployment in infrastructure
With base rates easing and infrastructure debt markets opening, the timing of capital deployment is less about waiting for rate reductions and more about accessing liquidity and structuring deals with flexibility. Shorter-dated transactions and floating-rate structures are gaining traction, providing issuers with the flexibility needed to navigate the current market environment.
Trends in private placement investments
Private placement investors are showing a growing preference for medium- to long-dated paper, with some flexibility for shorter tenors and floating-rate structures. This shift reflects the evolving needs of issuers and investors alike, as they adapt to the current interest rate environment and seek opportunities for strategic capital deployment.
The road ahead
Hannah’s insights underscore the evolving sophistication of US infrastructure investment strategies. From navigating geopolitical uncertainties to capitalising on the explosive growth of AI-driven data centres, the private placement market is adapting to meet the demands of a rapidly changing landscape.
