There are four broad categories which account for the most important components of this next generation of infrastructure: logistics warehouses, data centres, fibre optic cable networks, and mobile communication towers.
Each benefits from the digital revolution we have all experienced in our day-to-day lives. Logistics warehouses have benefitted from a boom in e-commerce that was present even before the well-documented pandemic-induced mass adoption of internet shopping. Data centres - large purpose-built server warehouses - host the physical servers that businesses need to store and transmit their data and continue to benefit from the growing demand. The need for central hubs to host and transmit that data will continue to accelerate, putting successful, sophisticated data centres at the forefront of the digital revolution.
Of course, this data relies on a physical network to enable the transmission to and from users at work and home. The huge rise in data usage is incompatible with ageing infrastructure and there is an obvious and overwhelming need to replace old copper cables with new fibre optic cables, offering greater bandwidth and speed.
There are significant environmental benefits to be found by ensuring the very best technology and infrastructure is installed, ensuring data is stored and transmitted in in the most efficient and sustainable way. There is no avoiding the vast amount of energy that is used when we all email, text and use social media - the digital revolution and its perpetual data cycle is very much in motion - but by investing in best-of-class assets that help to centralise processes and encourage use of the cloud, rather than physical in-house data storage, we can work to minimise the toll our hunger for digital technology has on the wider world.
Digital assets are critical infrastructure and are well established in developed markets around the world. There is nothing short of exponential growth ahead. The soon to be launched VT Gravis Digital Infrastructure Income Fund aims to tap into this mammoth trend, gaining exposure to projects which enable the digital world to work, via liquid specialist global REITs, housing best-in-class assets. For an investor, these assets are secured with long-term contracts and secure tenants, as well as the potential for further significant growth as the digital world expands in the years and decades – even centuries – to come. Investing in this long-term trend, investors can tap into the potential for strong future returns and steady, secure income.