US Infrastructure Boom Needs More Than Foreign Investment | Opinion

The United States is grappling with the challenge of maintaining its physical infrastructure in tandem with economic and technological growth. Investments from overseas totaled over $130 billion in 2025, as per Global SWF data cited by Realty Today.

Simultaneously, grid-supplied electricity to hyperscale data centers, leased facilities, and cryptocurrency mining operations rose to about 64.4 gigawatts in 2025, marking a 25% increase from the previous year. Experts predict this demand could reach 183.2 gigawatts by 2030.

These developments raise a critical economic question: how should investment capital be allocated towards the land, energy systems, industrial facilities, and infrastructure essential to sustained growth? This points to a broader shift in the U.S. investment landscape, where international capital is increasingly flowing into American assets while technological growth simultaneously elevates demands on land, energy, industrial facilities, and infrastructure.

However, directing capital towards functional assets that meet real economic needs is not a straightforward task. Physical assets must be developed in relation to their operating environments. A real estate project hinges on zoning, permits, utilities, construction expenses, prospective tenants, and local demand. Energy infrastructure necessitates access to resources, transmission capacity, and regulatory harmony.

To illustrate, data centers are frequently characterized by their computing capacity and technological advancements. Yet, their development hinges on a network of physical infrastructure. Factors such as electricity supply, cooling systems, land availability, water provision, transmission infrastructure, and specialized construction play a crucial role in determining a project's viability.

As S&P Global's research on data center power demand indicates, the expansion of computational infrastructure could heighten the significance of auxiliary energy systems, including battery storage. Consequently, investment prospects may extend beyond the data centers themselves to encompass the infrastructure required to construct, power, and operate them.

For investors in real assets, this fosters a more interconnected investment environment. Technological advancements can impact industrial demand, while industrial expansion can affect employment and population trends. These changes can subsequently affect housing demand, all while placing varying demands on local infrastructure. By comprehending these interconnections, investors can evaluate opportunities within a broader economic framework, rather than treating each property or asset class as an isolated decision.

Drawing from my experience in technology, real estate, private equity, and international business, I have underscored the significance of aligning investment decisions with ground-level conditions. While capital can swiftly cross borders, physical projects must navigate the unique requirements of individual markets. This is especially pertinent when considering investments in the United States, where a diverse range of real-asset opportunities exist, but market conditions vary significantly between regions and even neighboring municipalities.

To illustrate, the Southeast experienced approximately $35.2 billion in project investments during fiscal year 2026, accompanied by 436 business expansions and new company locations. International investors contributed over $7.8 billion in foreign direct investment associated with recruitment and expansion activities. Meanwhile, CBRE's 2026 U.S. Industrial and Logistics Occupier Survey revealed that the southeast was the leading region for expansion interest, with 30% of respondents selecting it for planned expansion within the next 36 months.

These indicators, however, do not guarantee that every investment in the region will be successful. They merely highlight the importance of considering regional economic conditions. Business expansion can influence the demand for industrial space, housing, transportation, and supporting services. Investors who grasp these interconnections may be better equipped to assess where development aligns with identifiable needs.

My real estate development experience has reaffirmed the intricate relationship between these considerations. Residential and industrial properties, data centers, and energy infrastructure serve distinct purposes, yet each relies on location, available resources, regulatory requirements, and the economics of development. Evaluating these factors individually, while comprehending how they interplay with one another, is essential to determining whether a project is viable.

While diversification across asset classes is not a replacement for sound investment judgment, each opportunity must be assessed based on its merits, including its costs, risks, anticipated demand, and operational requirements. Although connections between asset categories can provide valuable context, they should not overshadow the fundamental aspects of individual investments.