Competing for capital: investor priorities and emerging opportunities
Allens and Infrastructure Partnerships Australia are pleased to share the 2026 Australian Infrastructure Investment Monitor, the 11th annual survey of infrastructure investors. Drawing on the perspectives of leading Australian and international investors and financiers, the report provides a comprehensive assessment of the opportunities, challenges and settings shaping Australia's infrastructure market.
The findings reveal that while capital remains available and Australia continues to benefit from strong market fundamentals, investors are becoming increasingly selective amid heightened global competition. Concerns around deal flow, planning and approvals, industrial relations, productivity and changing tax settings are weighing on sentiment, despite continued interest in sectors such as renewable energy storage, transmission infrastructure, data centres and emerging core-plus assets.
The report offers valuable insights into where capital is likely to flow next and the reforms needed to strengthen Australia's competitiveness as a destination for infrastructure investment.
Key findings
- Australia remains an attractive infrastructure investment destination, supported by strong market fundamentals, economic stability and an experienced infrastructure sector, with 83% of investors likely to invest over the next three years.
- Investor confidence is softening amid growing competition for capital. North America has overtaken Australia as the most attractive investment market, while concerns around planning and approvals, industrial relations, tax settings and political risk are weighing on sentiment.
- The energy transition continues to drive investment opportunities, with storage, firming and transmission infrastructure emerging as the most attractive asset classes. At the same time, investor appetite for wind and solar generation has fallen sharply amid delivery, cost and approval challenges.
- Core-plus assets, data centres and defence infrastructure are emerging as key growth opportunities, reflecting investors' search for new sources of return in a market constrained by limited deal flow.
- Productivity has become a major concern for investors, with more than three quarters pessimistic about Australia's productivity outlook, and identifying industrial relations, tax settings and planning reform as priorities in improving competitiveness and attracting long-term capital.