Apollo’s chief economist Torsten Sløk has identified infrastructure as a critical investment opportunity for 2025, driven by a convergence of factors including aging infrastructure, regulatory support, and surging demand from artificial intelligence applications. In a note to clients, Sløk outlined how private infrastructure has demonstrated resilience during market stress while maintaining low correlation to other major asset classes.
The infrastructure funding gap is staggering: Government fixed assets including highways, streets, and power facilities now average nearly 30 years old, creating an $88 trillion funding shortfall by 2040. This aging infrastructure crisis coincides with growing regulatory support that has already boosted US manufacturing capacity and spending on machinery, equipment, and business construction in recent years.
A key driver of this infrastructure renaissance is the Infrastructure Investment and Jobs Act of 2021 (Bipartisan Infrastructure Law), which authorized $1.2 trillion for transportation and infrastructure spending, with $550 billion dedicated to new investments and programs. Sløk characterized this policy support as “unprecedented” and expects it to force continued infrastructure spending, creating what he calls a coming “industrial renaissance.”
The AI factor is particularly significant: Artificial intelligence’s explosive growth has dramatically increased power needs and demand for digital infrastructure, especially data centers. These facilities require massive amounts of space and electricity to operate, and their power consumption is already projected to exceed available supply in coming years. To meet this AI-driven demand, the US needs to more than double its power grid capacity by 2030 — adding triple the power requirements currently needed by New York City, according to Sløk.
Investment analysts have increasingly warned about America’s infrastructure deficit. Richard Bernstein has cautioned that inflation could continue rising if the US maintains its steep trade imbalance favoring imports without reindustrialization. Meanwhile, Morgan Stanley estimates the US economy could generate as much as $10 trillion over the next decade if it successfully scales domestic production. The combination of aging infrastructure, supportive policy, manufacturing resurgence, and AI-driven power demands creates what Sløk sees as powerful macroeconomic tailwinds for infrastructure investment in 2025 and beyond.
Key Quotes
Private infrastructure has shown resilience in times of market stress and provided downside protection with low correlation to other major asset classes. There are powerful macroeconomic tailwinds bolstering infrastructure today.
Apollo’s chief economist Torsten Sløk made this statement in his note to clients, emphasizing why infrastructure represents an attractive investment opportunity amid the AI-driven infrastructure boom.
To meet demand, the US needs to more than double its power grid capacity by 2030 — adding triple the power needs currently required by New York City.
Sløk highlighted the enormous scale of infrastructure investment required to support AI data centers, comparing it to tripling New York City’s entire power consumption to illustrate the magnitude of the challenge.
Our Take
What’s particularly striking about this analysis is how AI has transformed from a purely technological concern into a fundamental infrastructure challenge. The AI revolution is colliding with decades of infrastructure underinvestment, creating both crisis and opportunity. The timing is critical: as AI capabilities accelerate, the physical infrastructure needed to support them is becoming the primary bottleneck. This isn’t just about building more data centers — it requires reimagining America’s entire power grid, manufacturing base, and industrial capacity. The $88 trillion funding gap represents perhaps the largest infrastructure investment cycle in human history, and AI is the catalyst forcing action. Companies and investors who recognize that AI’s future depends on concrete, steel, and electricity — not just algorithms — will be best positioned for the coming decade. This infrastructure imperative may ultimately prove more transformative than the AI technologies themselves.
Why This Matters
This analysis highlights a critical intersection between AI advancement and physical infrastructure that will shape the next decade of economic development. The AI boom isn’t just a software story — it requires massive physical infrastructure investments that could reshape the American economy. The need to more than double US power grid capacity by 2030 specifically for AI-driven data centers represents one of the largest infrastructure challenges in modern history.
This infrastructure imperative has broader implications for energy policy, climate goals, and economic competitiveness. Countries that successfully build out AI-supporting infrastructure will likely dominate the next generation of technological innovation and economic growth. The $88 trillion funding gap and Morgan Stanley’s $10 trillion economic opportunity estimate underscore the massive capital flows that will be redirected toward infrastructure over the coming years.
For businesses, this signals opportunities in construction, energy, manufacturing, and technology sectors. For workers, it suggests job creation in infrastructure-related fields. For society, it raises questions about how to balance rapid AI expansion with sustainable energy practices and equitable development.
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