Empower the future of energy and infrastructure

Outlook 2025Empower the future of energy and infrastructure

We are at a global inflection point where future energy demand may soon outpace supply unless we fundamentally change the way we produce, consume, and deliver energy worldwide. This surging demand for electricity is largely due to the confluence of three global trends: changing demographics, widespread electrification, and rapid digitalization.

These megatrends are driving an increasing number of new investment opportunities for investors that can be accessed across both public and private infrastructure.

Trends driving the increase in power demand

Demographics: Population growth and a rising middle class icon

Demographics: Population growth and a rising middle class

An expanding global population, coupled with a rapidly growing middle class, will drive a substantial increase in demand for electricity as more people strive to reach a higher standard of living. Hypothetically, if everyone were to consume as much power as a typical middle-class individual, the world would require three times as much power as is currently available.

Electrification: Powering innovation and efficiencies icon

Electrification: Powering innovation and efficiencies

As the standard of living rises, the demand for power-intensive products and services increases. From air conditioning to connected devices, these quality-of-life improvements increasingly rely on more electricity than ever before. Concurrently, innovation and efficiencies make the adoption of electrification even more compelling, further compounding the need for power generation worldwide.

Digitalization: Driving exponential energy consumption icon

Digitalization: Driving exponential energy consumption

A more electrified and digitalized future relies on colossal amounts of data. This digitalization requires new investments in data centers, fiber networks, communication channels, and digital infrastructure globally.

Powering the digital revolution demands a disproportionate amount of electricity. In fact, data center usage alone has already surpassed the total power consumption of entire countries. The introduction of artificial intelligence (AI) into the equation may increase that demand by orders of magnitude.

Why invest in energy infrastructure?

To meet the growing demand for energy, new efficient and reliable sources of generation are needed to supplement the traditional, aging power sources. The invisible hand of the market will select the most cost-effective solution for both suppliers and consumers. The future energy infrastructure landscape will increasingly include renewable and cleaner sources, such as solar, wind, and battery storage technologies, given their competitive cost structures. Current tailwinds are accelerating the deployment and adoption of this energy transition infrastructure, including favorable government and corporate policies, energy security, and shifting public sentiment.

Levelized cost of energy by source

Energing transition supporting chart

MWh = megawatt hours

Sources: BNEF, “2H 2023 LCOE Update” (December 2023); Lazard, “Levelized Cost of Energy+” (June 2024).

Investment solutions to consider

Macquarie ETFs

Private Market Investment Solutions

Contact a dedicated Private Markets Sales Specialist today by calling 212 317-9200

Macquarie Energy Transition ETF (PWER)

Macquarie Energy Transition ETF (PWER)

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Macquarie Global Listed Infrastructure ETF (BILD)

Macquarie Global Listed Infrastructure ETF (BILD)

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Have questions? —

Contact us. Call 877 693 3546 or contact your regional director.

IMPORTANT INFORMATION

Investing involves risk, including the possible loss of principal.

Diversification may not protect against market risk.

Risk is increased in a concentrated portfolio since it holds a limited number of securities with each investment having a greater effect on the overall performance.

Carefully consider the Fund’s investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Fund’s prospectus or the summary prospectus, which may be obtained by visiting macquarie.com/mam/literature for mutual funds, visiting macquarie.com/mam/etf-literature for ETFs, or calling 877 693-3546 Read the prospectus carefully before investing.

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ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

Nothing presented should be construed as a recommendation to purchase or sell any security or follow any investment technique or strategy.

Securities in the energy sector may be subject to price fluctuations due to various factors including real and perceived inflationary trends and political developments, the cost assumed in complying with environmental safety regulations, demand of energy fuels, energy conservation, the success of exploration projects, and governmental regulations.

Investment strategies that hold securities issued by companies principally engaged in the infrastructure industry have greater exposure to the potential adverse economic, regulatory, political, and other changes affecting such entities.

Infrastructure companies are subject risks including increased costs associated with capital construction programs and environmental regulations, surplus capacity, increased competition, availability of fuel at reasonable prices, energy conservation policies, difficulty in raising capital, and increased susceptibility to terrorist acts or political actions.

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