The global energy transition, coupled with accelerated digitalisation and the rise of AI, is pushing global project finance into a ‘new era’, business administration and compliance solutions firm CSC has said in a new report.

According to the report, Project Finance at an Inflection Point: Adapting to New Realities, infrastructure is viewed as the main source of future growth, with 70% of respondents citing it as the leading area for investment, while renewables, cited by 48%, comes second.

Within renewables, wind leads the way in terms of investment expectations (50%), followed by renewable natural gas (41%) and green hydrogen (41%).

This underscores the ‘accelerating momentum of energy transition technologies’, CSC said in its report.

Technology surge

Elsewhere, technology, media and telecommunications, cited by 43% of respondents, is also viewed as a core investment focus, linked to increased data use and network expansion.

“AI will likely drive an unprecedented surge in project financing, particularly for data centers and associated infrastructure,” commented Christian Oakley-White, managing director and head of project finance at CSC. “As data center usage shifts from cloud services to generative AI, the requirements for computing power, energy, and financing will grow exponentially.”

On a regional basis, Europe leads the global outlook, with close to two fifths of respondents (39%) anticipating significant project finance growth over the next three years. The UK (35%) places second, followed by Asia Pacific (32%), and North America (31%).

Capital-intensive projects

The report, which was based on responses from 200 project finance professionals, indicates a sector that is shifting towards more complex, capital-intensive projects, with a greater reliance on private capital, it added.

“The global demand for new energy, infrastructure, and digital capacity is outpacing traditional financing channels,” commented Bryan Gartenberg, managing director, global sales head of Project Finance and Loan Agency, CSC.

“Private capital is stepping in to bridge the gap, but today’s deals demand more than funding alone. Stakeholders need partners with deep expertise and operational discipline to manage complex, cross-border transactions. Outsourcing to experienced trust and agency providers is becoming essential to deliver large-scale projects with speed and confidence.” Read more here.