A changing geopolitical environment, accelerating technological innovation, and evolving energy systems are shaping new opportunities and patterns in investment returns.
As we enter 2026, investors have the opportunity to understand better and respond to these global trends to support decision-making.
The artificial intelligence boom has taken much of the oxygen in the market. The tech giants have committed massive infrastructure spending with global data centre investments reaching a record $61 billion in 2025, confirming that it is no longer seen purely as a speculative investment.
These significant financing needs are reshaping how capital is deployed, according to S&P Global 451 Research. More than $900 billion is needed for data centre investment over the next four years.
Some analysts have raised questions about the pace of an artificial intelligence (AI) related growth, noting that several of the Magnificent Seven stocks – the most influential companies in the US market – underperformed the S&P 500 in 2025. Others see the current cycle consistent with long-term historical patterns since 1920.
Nonetheless, investment opportunities are beginning to broaden into software and services as the sector matures.
These investments have become a dominant contributor to growth in the United States, accounting for 80% of private domestic demand growth in the first half of 2025. While the US and China lead the data centre charge, commanding more than 60% of global capacity, players across Europe, the Middle East, and the Asia-Pacific are rapidly building their own digital centres to maintain control of their data and digital systems.
Australian investment in artificial intelligence research and development is growing strongly. White AI-related patent numbers remain low by global standards, they have almost quadrupled over the past decade, according to a National Artificial Intelligence Centre report.
The energy transition
The global energy mix is undergoing a significant shift with accelerating investment in electric transport, renewables and grids, driven by massive growth in demand and improved supply chains.
Infrastructure funds and private equity are investing in renewable generation and storage assets, seeking long-term returns linked to inflation.
Navigating wars and tariffs
Markets are adjusting to a more complex global environment, shaped by geopolitical developments and changes in US trade policy. These shifts are influencing supply chains, inflation and how investors assess risk.
In response, many portfolios are becoming more diversified. Assets traditionally seen as defensive, such as gold, have attracted interest as a way to manage currency volatility. At the same time, increased global defence spending has supported continued investment in defence-related companies.
Beyond traditional assets
As traditional stocks and bonds don’t always move as predictably as they once did, many individual investors are exploring alternative investments to help improve stability. These alternatives include:
- Infrastructure – such as toll roads and utilities.
- Private equity – offers a way to capture value in unlisted companies. New private equity funds are emerging to shake up the sector by enabling shorter-term capital commitments.
- Private credit (or private debt) market – offers floating-rate exposure, which can be a valuable hedge if interest rates are high. In Australia, the $224 billion private debt market accounts for some 14% of all corporate lending.
Next steps
Looking ahead, successful investing will likely be shaped by how well portfolios are positioned to capitalise on emerging opportunities across technology, energy, geopolitics, and alternative assets while maintaining a disciplined approach to risk.
Speak with your local Nexia Adviser to navigate new opportunities while staying on track to achieve your long-term goals.
