Seraya Partners said Monday that energy transition, digitalization, and regionalization, are driving new investment opportunities across developed and emerging Asia, as the region continues to drive global economic growth.

The Asia-based independent private equity fund said in its latest whitepaper that an estimated $1.7 trillion in annual funding is required to sustain growth, modernize energy systems, and enhance digital and regional connectivity.

According to the whitepaper, the shift from fossil fuels to renewables is driving substantial investments in offshore wind, battery storage, and grid modernization.

Notably, private capital is driving investments in legacy assets transitioning to renewables, including coal-to-renewable repurposing and offshore wind projects.

As Asia accelerates its shift toward a low-carbon economy, it noted that investment in renewable energy, battery storage, and grid infrastructure is scaling rapidly.

It said investors are focusing on legacy asset transitions, energy storage solutions, and modernized transmission networks to support Asia’s decarbonization.

It pointed out that brown-to-green transition is one of the key investment themes.

It noted that the shift from fossil fuel assets to renewables is gaining momentum, with institutional investors acquiring aging coal and gas-fired power plants for redevelopment.

It added that in Japan and South Korea, companies are actively converting coal-fired plants into solar and wind hubs, often integrating grid-scale battery storage for enhanced efficiency.

With the rapid growth of solar and wind energy, it also noted that Asia’s power grids need largescale battery storage and modernized transmission networks to manage supply demand fluctuations.

It noted that China and India are leading in energy storage investments, while Singapore and South Korea are deploying smart grid technologies and microgrids to improve grid stability.

Despite the significant investment opportunities in Asia’s energy transition, it said there are key challenges in regulatory landscapes, market inefficiencies, and financing constraints for consideration.

Meanwhile, home to over 50 percent of the world’s internet users, the whitepaper said Asia is experiencing surging demand for hyperscale data centers, fiber-optic networks, and artificial intelligence (AI)-driven computing infrastructure.

Additionally, DeepSeek’s advancements in lowering capital expenditure (CAPEX) costs for AI can potentially drive new demand for AI infrastructure in the region.

For investors, it highlighted that digital infrastructure presents long-term, scalable investment opportunities.

This is supported by stable, contracted revenue streams from cloud providers and telecom operators in addition to inflation-hedge returns, backed by essential infrastructure demand, strong government support and private-sector participation.

According to the whitepaper, three emerging investment themes are shaping the future of digital infrastructure investment in Asia.

Firstly, the demand for hyperscale data centers and broadband capacity is surging, driven by cloud adoption, AI workloads, and enterprise digitalization.

As global tech firms, including AWS, Microsoft, Google Cloud, and Alibaba Cloud, expand their regional operations, institutional investors are actively participating in large scale data center developments through platform investments, private equity partnerships, and infrastructure funds.

Secondly, fiber-optic and 5G connectivity are other high-growth areas where private investment is accelerating the expansion of high-speed networks to improve internet penetration and regional connectivity.

Governments and telecom operators are actively deploying fiber broadband and 5G networks, particularly in Southeast Asia and South Asia, where demand for reliable, highspeed connectivity is increasing due to urbanization and industrial digitalization.

Thirdly, the rapid expansion of data centers and fiber infrastructure is driving significant energy demand.

Hyperscale data centers, critical for AI workloads, require reliable and scalable power solutions.

As deployment accelerates, energy availability and stability are becoming key investment priorities, linking data center growth with energy infrastructure development.

Looking ahead, it foresees increased regional partnerships to support advanced cloud infrastructure.

With cross-border data flows and cloud interconnectivity expanding, collaboration between private investors, technology providers, and governments will be key to building next-generation cloud infrastructure.

At the same time, increasing government backing for digital transformation is further enabling private capital to play a more significant role in bridging funding gaps and accelerating infrastructure development across the region.

It also foresees integration of energy-efficient solutions into data infrastructures.

As data centers remain among the most energy-intensive infrastructure assets, it opines that investors are prioritizing renewable-powered facilities and energy-efficient cooling systems to ensure long-term sustainability.

“As Asia’s economy becomes increasingly data-driven, digital infrastructure is evolving into an essential asset class for institutional investors,” it said.

The whitepaper also highlighted that Asia’s increasing economic integration continues to fuel large-scale infrastructure investments.

Meanwhile, Trump-era tariffs, semiconductor export controls, and China’s ongoing decoupling from the U.S. are reshaping supply chains and investment flows, introducing new layers of complexity for infrastructure investors.

While over 90 percent of Asia’s infrastructure funding has historically come from public sources, the whitepaper highlighted that private capital is becoming an essential driver of infrastructure development, particularly in high-growth sectors such as renewable energy, digital connectivity, and cross-border supply chains.

With $1.3 billion in assets under management, Seraya Partners is an independent private equity fund for next-generation infrastructure investing, headquartered in Singapore.

The whitepaper, “Unlocking Asia’s Infrastructure Potential,” highlighting the pivotal role of private capital in addressing Asia’s massive $26 trillion infrastructure investment challenge through 2030.

#EnergyTransition #DigitalInfrastructure #RenewableEnergy #InvestmentAsia #SmartGrid