On this episode of the Going Long Podcast, Sarah Williamson speaks with Karl Kuchel, Chief Executive Officer of Macquarie Infrastructure Partners and Head of Infrastructure Americas at Macquarie Asset Management. Kuchel explains why infrastructure is in a sustained “supercycle,” driven by energy transition, digitalization, and shifting supply chains, and how AI and data center growth are colliding with power constraints. He also unpacks why infrastructure is fundamentally a stakeholder business, how Macquarie creates value by scaling platforms rather than simply owning mature assets, and what different types of investors should consider as they build and refine their infrastructure allocations for the next decade. 

Topics Include: 

• [00:01:20] The Infrastructure Supercycle and Its Drivers: How structural themes like decarbonization and digitalization, combined with underinvestment and cyclical shifts such as deglobalization and reshoring, are creating broad, sustained demand for infrastructure capital across sectors.
• [00:05:20] Global Scale, Local Stakeholders: Why similar digital and energy trends are unfolding across the US, Europe, and Asia-Pacific, and how successful investing depends on pairing a global view with a deep local understanding of regulators, communities, employees, and other stakeholders.
• [00:11:45] AI, Data Centers, and Power as the New Constraint: How accelerating AI and data usage are driving unprecedented demand for data centers, why grid constraints and power availability now determine where capacity is built, and why rising costs have not dimmed investor appetite. 
• [00:18:50] Creating Value Through Growth Platforms: What Macquarie’s Aligned Data Centers journey illustrates about entering thematics early, scaling from a handful of sites to a national platform, exiting to crystallize returns, and focusing on businesses where growth and building are more accretive than simply buying at mature multiples. 
• [00:25:55] Matching Infrastructure to Investor Objectives: How “infrastructure” spans a spectrum from stable, income-oriented assets to growth- and development-heavy strategies, and why more mature allocators now think in terms of how each exposure complements their existing infrastructure portfolio. 
• [00:31:37] The Next Decade: Thematics Endure, Discipline Differentiates: Why Kuchel expects today’s big themes – digital, data, power, and deglobalization – to remain in place over the next decade, and how the real test will be which investors paid sensible prices and executed well versus those who overpaid for strong stories. 

The Infrastructure Supercycle and Its Drivers 

The current moment in infrastructure is defined less by a single hot sector and more by a convergence of long-term forces. Energy transition is reshaping how power is generated, transmitted, and consumed. Digitalization has turned connectivity, compute, and data storage into essential services. At the same time, supply chains are being reconfigured as production is brought closer to end markets, and some legacy assets show signs of underinvestment. Taken together, these structural and cyclical factors are generating sustained demand for capital across a wide range of infrastructure assets rather than just a narrow slice of the market. 

These themes are not transient. Decarbonization targets run in decades, not quarters. The growth in data usage and compute needs follows compounding adoption curves. Shifts in trade patterns and industrial policy take years to work through logistics networks and industrial footprints. For long-term investors, this combination creates a backdrop where the opportunity set is both large and persistent, but not automatically attractive at any price. 

A Global Asset Class with Local Stakeholders 

Although the forces behind the supercycle are global, they manifest differently by region. The United States has been at the forefront of digital and data infrastructure, reflecting the scale and concentration of large technology and cloud providers. Similar patterns are emerging in Europe and across Asia-Pacific, where local regulations, market structures, and demand profiles influence how and where assets are built. 

This interplay between global trends and local realities makes infrastructure a deeply contextual asset class. Every investment sits inside a network of stakeholders: regulators who shape the economic model, communities that experience environmental and social impacts, customers who depend on reliable service, and employees and management teams who operate the assets. Understanding those relationships, where they are strong or fragile, and how they can be improved, is central to long-run value creation. Physical assets matter, but without healthy stakeholder dynamics, their economic value can be compromised. 

AI, Data Centers, and Power as the Bottleneck 

Nowhere is the tension between demand and constraint clearer than in AI and data centers. On the demand side, data creation and processing requirements continue to accelerate as AI capabilities expand, and new applications emerge. Infrastructure investors focusing on the usage side see a long runway for assets that move, store, and process data – data centers, fiber networks, towers, and related digital infrastructure.  

On the supply side, the binding constraint has shifted toward power. Modern data centers require enormous amounts of energy and sophisticated cooling. Many core markets face grid limitations, planning delays, and long lead times to bring new generation and transmission online. That has pushed development into nontraditional locations where power is available, even if they sit away from historic hubs. Efficiency improvements in chips, cooling, and power usage will help, but compounding demand is expected to outweigh those gains, reinforcing the case for continued investment in both digital and energy infrastructure. 

Building Value Through Growth, Not Just Ownership

Strong thematics alone do not guarantee strong returns. The same forces that attract long-term capital to digital and transition-related infrastructure can also inflate entry valuations. The key question becomes not whether a theme is attractive, but how capital is deployed within it. Strategies that assume flawless execution, uninterrupted demand growth, and perfect regulatory outcomes leave little margin for error. 

One way through this challenge is to focus on growth platforms rather than static ownership. Entering sectors early, partnering with capable management teams, and scaling businesses—from a small footprint to a national or regional platform—can create value beyond simple multiple expansion. Building out assets at a cost below the valuation of mature platforms allows investors to capture the spread as businesses grow. This approach sits closer to the growth end of the infrastructure spectrum, borrowing some techniques from private equity while maintaining the long-duration, essential-service profile that defines the asset class.  

Designing Infrastructure Allocations that Fit the Investor 

From the allocator’s perspective, infrastructure is not a single bucket but a spectrum of risk and return. Some institutions use the asset class as a source of stable, inflation-linked income and lower volatility. Others allocate to strategies that pursue higher total returns through development, expansion, or more commercially exposed assets. Retail, wealth, and institutional investors can all participate, but the right approach depends on what role infrastructure is meant to play in the broader portfolio.  

As allocations mature, the conversation evolves. The question is no longer just whether a particular fund or strategy looks attractive in isolation. It becomes how that exposure complements what is already owned: by sector, geography, risk profile, and correlation to other holdings. Investors increasingly want new strategies to contribute both compelling standalone return potential and meaningful diversification within their existing infrastructure book. 

The Next Decade: Same Themes, Different Outcomes

Looking five to ten years ahead, the structural themes driving the supercycle are likely to remain familiar. Digital infrastructure and data usage should be more deeply embedded in daily life. Power systems will still be working to reconcile rising demand with decarbonization goals. Deglobalization and supply chain realignment will continue to influence where capital is needed. What will look different is the distribution of outcomes among investors who pursued these themes.  

Some will have entered thematics early, structured investments prudently, partnered effectively with management, and grown platforms in a disciplined way. Others will have paid too much, taken on uncompensated risks, or underappreciated stakeholder and regulatory dynamics. In that sense, the next decade in infrastructure is not just about participating in a supercycle; it is about how long-term investors exercise judgment within it. The themes may be widely recognized, but the dispersion in results will come from how thoughtfully capital is deployed, not simply from identifying the right narrative.