Digital Infrastructure
Investing in high-quality, fast-growing businesses and assets that accelerate digital transformation, strengthen connectivity, and offer the potential for long-term economic benefits
Supporting the backbone of the modern, connected economy
Demand for digital infrastructure – such as data centres, fibre networks and transmission towers is growing rapidly. This acceleration is driven by the advance of artificial intelligence (AI), cloud adoption, and the continued digital transformation of society. We see digital infrastructure assets increasingly forming the backbone of modern economies.
We offer investors access to this fast-growing, essential sector by incubating opportunities on our balance sheet and partnering with leading developers, operators and market makers.
Established in 2018, our dedicated Digital Infrastructure team has demonstrated a proven global track record. With an average of 15+ years’ experience and a portfolio spanning the UK, Europe, and the US, the team has successfully appraised more than 100 deals.
By combining deep sector expertise with strong global partnerships, we seek to deliver unique access to the digital infrastructure assets shaping the future economy. Our focus is on creating long-term value for investors while supporting the essential networks that connect people, businesses, and societies globally.
Why digital infrastructure?
US$600bn
of investment will be made in data infrastructure alone by 2035, fueled by increased use of the cloud, social media, streaming and AI1.
¹McKinsey
Policy tailwinds driving investment
€77bn total government funding for digital infrastructure projects committed over the next 5 years across the UK, US and Europe2.
² UK - Project Gigabit, Building Digital UK, February 2024; EU - Digital Decade Strategy, The EU Digital Decade, September 2021; US - Infrastructure Investment & Jobs Act, November 2021.
Digitalisation megatrend driving demand
In our view, strong cashflow generation, success - based capex model and stickiness of demand represent attractive dynamics for investors.
Investment portfolio
Strategic partnerships
Adding deep sector expertise by collaborating with specialist platforms, developers and operators.
A future-focused approach
Investing in high-quality, fast- growing businesses and assets that meet the needs of an evolving world.
Contributing to economic growth
Our investment approach supports increased productivity, gross value added (GVA) and job creation in the regions served by the infrastructure.
Investment case studies
KAO Data
A leading fast-growing multi-site data centre operator and developer
Since L&G's investment in 2019, Kao has grown from being a single site with a single customer of a few hundred KW to a four-site (and growing) platform serving 17 customers with 100MW of capacity. It serves a spread of leading AI, cloud and enterprise customers, including the hosting of the UK's most powerful supercomputer, Nvidia's Cambridge-1, at its Harlow site.
Kao is active on UK and European expansion opportunities.
London Newham Data Centre Development
A c. £750m sustainable, urban hyperscale data centre development with a prime location in, London Borough of Newham.
In 2022, L&G invested a majority stake in one of the UK & Europe’s largest urban hyperscale build-to-suit data centre developments, offering 800k sq ft (75k sqm) of space and up to 130MVA of power. The ESG-focused development is designed with heat recovery & export facilities and offers renewable Power Purchase Agreements (PPA) opportunities.
It is expected to contribute £88m to Newham’s GVA (gross value added), creating over 1,000 skilled jobs and 500 high-growth data businesses to the borough.
Case studies shown for illustrative purposes only. The above information does not constitute a recommendation to buy or sell any security
Recognition
Insurance Asset Risk Awards 2025
Innovation investment of the year
London Newham Data Centre Development
Datacloud Awards 2025
Most Innovative Partnership of the year
London Newham Data Centre Development
Awards should not be considered a recommendation. Past performance is not a guide to the future.
Investment opportunity
Meeting the demands of a data-driven world
Increasing reliance on technology across industries fuels a continuous surge in data generation and consumption. Digital infrastructure underpins cloud computing, AI, e-commerce, and other digital services.
Strategic diversification and long-term growth
We believe digital infrastructure offers attractive characteristics for investors looking to diversify their portfolios while seeking secure long-term, stable returns.
Developing sustainable infrastructure
We believe this sector offers economically attractive and sustainable investments through innovative technology such as utilising data centre heat for local heating networks.
An opportunity to invest in data centres, wireless, fibre, and cloud assets benefiting from accelerating digital demand.
Investment opportunity
€730.8m*
investment capital in the strategy*
High-teens IRR
strategy target*
*Internal data as at 15 June 2026. Assumptions, opinions, and estimates are provided for illustrative purposes only. There is no guarantee that any forecasts made will come to pass.
Meet the team
Matteo Colombo
Head of Digital Infrastructure
Neil Meikle
Head of Real Asset Capital Raising
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Key risks
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. It should be noted that diversification is no guarantee against a loss in a declining market.
Whilst L&G has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.
Get in touch
Get in touch
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