New York, NY—Over the past three decades, the rapid rise of digital communications has not only transformed how people connect but also given rise to a burgeoning new investment category: digital infrastructure. This sector, also known as digital architecture, encompasses a range of critical technologies and facilities, including data centers, server farms, mobile communication towers, and microchip manufacturing facilities.
From the humble beginnings of 2G mobile networks in the early 1990s to today’s lightning-fast 5G, the demand for more robust and expansive digital infrastructure has grown exponentially. To illustrate this evolution, consider that 2G networks offered speeds of around 0.1 megabits per second (Mbps). In comparison, modern 5G networks can reach speeds of nearly 10,000 Mbps, or 10 gigabits per second (Gbps). This 100,000-fold increase in speed underscores the dramatic advancements in technology—and the infrastructure needed to support it. The rollout of 5G is just one facet of the digital revolution. Emerging technologies such as blockchain, artificial intelligence (AI), and cloud computing are driving unprecedented growth in digital infrastructure. These advancements require increasingly sophisticated data centers and a dense network of cell towers to support the ever-growing demand for connectivity and computing power.
According to industry expert John Dinsmore, CEO of Digital Infrastructure Group, the sector is poised for sustained growth. “The exponential rise in data consumption and the proliferation of connected devices are pushing the limits of our existing infrastructure,” he explained. “To meet this demand, we must significantly increase our investment in data centers, fiber-optic networks, and next-generation wireless technologies.” While the potential of 5G is widely recognized, its adoption has needed more infrastructure, particularly cell towers capable of supporting the technology. The deployment of 5G requires a denser network of towers and small cells than previous generations, presenting logistical and financial challenges.
Nevertheless, the investment opportunities are immense. A recent Global Infrastructure Investor Association report estimates that global spending on digital infrastructure will exceed $1 trillion over the next decade, driven by the continued rollout of 5G and the expansion of data centers. Hans Vestberg, CEO of Verizon, highlighted the critical role of infrastructure in enabling technological innovation. “5G is way more than just a step up from current wireless technology. It’s a quantum leap that will bring an era of radically new possibilities across all areas of technology.”
The digital infrastructure boom shows no signs of slowing down. In addition to supporting existing technologies, the sector will play a crucial role in enabling future innovations. As smart devices become more integrated into daily life and industries embrace digital transformation, the demand for reliable, high-speed connectivity will continue to grow.
“I think there’s going to be an explosion at the edge,” said Chris Crosby, CEO of Compass Datacenters, which builds data centers in regional markets. like Nashville and Raleigh “You’ll have your edge data center, and after that you’ll have micro data centers. It’s going to be a lot like caching. The big content providers want to keep data off the main network.”
The world rapidly evolves into a digital-first society, with interconnectedness at its core. This transformation presents a unique investment opportunity in the foundational digital infrastructure sector. Companies that build and manage this critical infrastructure are not merely participants in this shift – they are the architects and engineers shaping its future.
