Apollo Global Management’s buzzing infrastructure investment arm expects the second half of 2026 to be as busy as the first, as it prioritizes artificial intelligence (AI), associated power generation development, and adjacent value-creation opportunities tied to global industrialization.

“In many ways we are witnessing a generational investment cycle across power and infrastructure,” Harry Seekings, partner, chair of Apollo Infrastructure Group and Head of Infrastructure Equity, told this news service. He noted the estimated USD 30tn investment needed in the power and utilities sector over the next decade.

Seekings and fellow Apollo partner David Cohen expect deal activity to remain elevated in 2027 as the firm continues deploying capital into AI-adjacent infrastructure opportunities.

Cohen emphasized that one of the areas with the “strongest capital demand is likely at the intersection of energy and digital infrastructure,” where growing computing requirements are creating investment opportunities beyond traditional data-center ownership.

“There is significant value creation that takes place before a data center becomes an operating, leased asset,” Seekings said.

The firm’s origination team is evaluating opportunities across transmission and grid infrastructure, natural gas infrastructure, fiber networks, cooling systems, and behind-the-meter power generation solutions. According to the partners, these areas represent potentially attractive entry points benefiting from the broader digital infrastructure tailwind.

Apollo’s recent investments reflect that strategy. In April 2026, the firm acquired a 40% stake in one of Western Canada’s largest independent gas-processing platforms through its Pembina Gas Infrastructure transaction. The firm also acquired Eagle Creek Renewable Energy, adding 85 hydroelectric facilities across 18 states and 700 megawatts of clean-power generation in a USD 1.5bn transaction announced October 2025.

The partners said infrastructure’s growing role as an institutional asset class continues to support strong investor interest.

“Infrastructure has evolved from a relatively specialized sector into a recognized institutional asset class, and we continue to see investors engaging around the opportunity,” Seekings said.

Cohen added that infrastructure offers investors an attractive portfolio diversifier through potentially uncorrelated returns, inflation protection, cash-flow generation, and lower volatility relative to traditional public market portfolios.

Investor appetite remains strong

The symbiotic relationship between private equity investors, infrastructure development, and private capital continues to attract new investors to the sector, the partners said.

Cohen attributed part of that demand to the significant capital requirements associated with the global infrastructure build-out.

“The scale of investment required means private capital is expected to play a major role in funding this build-out,” he said.

The partners said existing institutional investors are largely recommitting to new funds, while additional capital continues to come from wealth-management and retail-oriented channels through semi-liquid and evergreen products.

“Uncorrelated returns that are an inflation hedge and remain strong with low volatility are what appeal to investors versus a typical 60/40 portfolio,” said Cohen, referring to the classic investment strategy of splitting 60% in stocks and 40% in bonds.

Over the last few years, Seekings said, the infrastructure market has seen unprecedented capital formation, even as broader private markets contend with slower realizations and reduced capital recycling.

Apollo’s response, he said, is its ability to pursue opportunities across the capital structure. “Our differentiation comes from the breadth of the Apollo platform,” Seekings said.

Investment criteria and deployment strategy

When evaluating investments, Apollo is focused on technologies that fit its investment sweet spot.

“We generally want to finance proven technologies and durable business models as opposed to taking technology risk,” Seekings said.

The partners cited Eagle Creek as an example of the firm’s preferred investment profile, noting that the platform combines scarce power generation assets with growing US electricity demand.

Apollo also favors investments with strong contractual frameworks and reliable counterparties. Cohen said the firm’s minimum equity commitment for a single investment is around USD 200m-USD 250m.

“We have a fairly wide lens on deal size, from middle-market opportunities to very large transactions, so EBITDA alone is not a defining screen,” Seekings said.

The firm remains open to bilateral transactions, corporate partnerships, carve-outs, and traditional auction processes. According to the partners, Apollo is actively seeking opportunities across founder-owned energy and infrastructure-adjacent businesses, middle-market opportunities, and hybrid capex solutions.

“We can buy businesses that are several billion-dollar equity checks, and structure large-scale corporate partnerships. We’re pursuing these deployments actively and with flexibility,” Cohen said.

Looking ahead, Apollo expects to close several infrastructure transactions before year-end while continuing to assess new opportunities based on the quality and durability of cash flows, barriers to entry, downside protection, and the potential for value creation, Seekings said.