Investing Through Structural Change: Opportunities at the Intersection of Growth and Sustainability

Artificial intelligence (AI) is emerging as a general-purpose technology comparable to electrification or the internet, capable of reshaping entire economies over decades. The scale of capital expenditure on data centres, semiconductors and cloud infrastructure suggests that this is not a short-term hype cycle, but a structural shift supported by strong corporate earnings and cash flows. 

However, AI’s growth is inseparable from energy availability. Training and operating advanced models require enormous computing power and electricity, making reliable and low-carbon energy infrastructure a critical bottleneck. The outlook highlights that AI adoption must advance alongside the energy transition, including renewables, nuclear power, grid modernisation and storage solutions. 
This creates a powerful investment nexus:

• Technology leaders enabling AI deployment
• Utilities and grid operators expanding capacity
• Renewable developers and nuclear providers
• Energy storage and transmission infrastructure
• Semiconductor supply chains

Importantly, the benefits of AI are not confined to technology companies. Productivity gains are expected across sectors including healthcare, manufacturing, logistics and finance, creating broad-based opportunities for companies able to deploy AI effectively.

The transition toward low-emission energy systems is one of the largest investment programmes in modern history. Estimates suggest trillions of dollars annually will be required to build renewable generation, grids, batteries and energy-efficient infrastructure¹.

Electrification is the common thread linking multiple sectors, such as transportation (electric vehicles), industry (electrified processes), buildings (heat pumps and efficiency upgrades), digital infrastructure (data centres).

For investors, this transition favours companies involved in the following: Renewable energy production, grid expansion and smart networks, energy storage technologies, electrification equipment and materials, energy efficiency solutions. 

It also reinforces the importance of infrastructure investing, both public and private, as governments alone are unlikely to finance the required scale of development.

A frequently overlooked implication of the energy transition is the surge in demand for raw materials. Renewable technologies, batteries and electrification rely heavily on metals such as copper, lithium, nickel and rare earth elements.

At the same time, geopolitical fragmentation is increasing the strategic importance of secure supply chains. Countries and regions are prioritising resource independence, recycling and domestic production to reduce reliance on external suppliers.

This dynamic supports several investment areas:

• Mining companies focused on transition metals
• Recycling and circular-economy businesses
• Processing and refining capacity
• Resource-efficient manufacturing technologies

Sustainability considerations are critical here: investors are increasingly differentiating between producers based on environmental practices, labour standards and governance.

From a long-term perspective, emerging markets (EM) stands to benefit from structural shifts in both global growth and sustainability. Younger populations, urbanisation and rising middle classes support long-term consumption trends, while infrastructure development drives demand for energy, transportation and digital connectivity. 

A weaker US dollar, not now given elevated geopolitical uncertainty but over longer horizons as EM central banks and investors refocus their currency exposure away from the dollar, and supportive domestic policies can also improve capital flows and economic conditions in EM economies. 

From a sustainability perspective, EM plays a dual role:

1. Demand centre — growing energy needs from electrification of industries and consumption from an increasing middle class are increasing electricity demand.
2. Solution provider —EM plays a key role in the development of renewable deployment, resource supply and manufacturing. For example, China alone has added more solar capacity for generating solar than the rest of the world combined (with panels designed and manufactured in China).  

Opportunities include:

• Renewable expansion in fast-growing economies
• Sustainable infrastructure development
• Financial inclusion and digitalisation
• Consumer sectors benefiting from income growth

Europe is repositioning itself for a more fragmented world by investing in energy independence, infrastructure, defence and technological capability. This reflects a broader shift from efficiency-driven globalisation toward resilience and strategic autonomy. 

Key investment areas include:

• Clean energy and grid modernisation
• Defence and cybersecurity
• Industrial innovation
• Healthcare and life sciences
• Circular-economy initiatives

Europe’s emphasis on sustainability regulation and resource efficiency may also support companies positioned to benefit from stricter environmental standards and repair-oriented product design.