Investing in water infrastructure – the next big thing?

According to Allianz Global Investors, although water is vital for agriculture, industry, and everyday life, its widespread availability often leads investors to overlook it. However, reliable water access cannot be taken for granted—it depends on continuous upgrades in areas such as filtration, wastewater management, and distribution systems. Investing in water infrastructure is therefore becoming increasingly important. For 2025, Allianz GI expects a significant rise in such investments, driven by six key factors.

Andreas Fruschki, Chief Investment Officer Thematic Equity with Allianz Global Investors, highlights one reason: “The recent boom in AI has also led to a burgeoning development of data centers, semiconductor factories and similar industries. While it’s well-known that these consume vast amounts of electricity, it is perhaps less understood that they also require large quantities of water for cooling or as part of their production processes. The new digital economy that is emerging is therefore also expected boost investments in water infrastructure.”

Read the full insight here.