Commercial real estate investors are significantly widening their investment universe to encompass real assets, particularly energy infrastructure assets, according to research from Knight Frank.

A report by the global property consultancy reveals that nearly a quarter (24%) of real estate investors either have or expect to have infrastructure exposure by the end of 2026. Among larger investors, this figure rises to over a third.

With energy costs and grid availability now defining asset competitiveness, investors are seeking infrastructure exposure to hedge energy risk and to capture inflation-linked returns.

The UK renewable energy market recorded more than 280 transactions in 2025 across mergers and acquisitions (M&A) and project finance. Solar assets accounted for nearly half of M&A deals, while battery energy storage systems represented the largest share of total megawatts transacted at approximately 40%.

Ian Wood, partner and head of infrastructure at Knight Frank, said: “The era of treating energy and infrastructure as external to real estate is over. Power availability, grid resilience and digital capacity now shape competitive advantage as much as location or lease terms. We’re seeing a fundamental rebalancing where investors recognise that securing upstream infrastructure exposure strengthens downstream real estate performance.

“Broadening investment into infrastructure will result in more resilient, future-proofed real asset portfolios that can navigate the energy transition while capturing new return profiles.”

Beyond structural forces, policy momentum – particularly in the UK – is accelerating infrastructure from long-term ambition into investable reality. The UK government’s Modern Industrial Strategy and 10-Year Infrastructure Plan outline £718bn of planned investment.

The government’s ambitious clean power targets, combined with planning and connection reforms and the record 15 gigawatts awarded in the 2026 Contracts for Difference (AR7) auction, underscore the strategic imperative.

Flora Harley, head of energy and sustainability research at Knight Frank, said: “Energy procurement has evolved from a cost management exercise to a strategic investment lever. We’re increasingly advising clients on integrated power procurement strategies – from corporate power purchase agreements to onsite generation and private wire arrangements – linking into asset and portfolio planning. Looking ahead, we’ll likely see more investors pursuing direct renewable, grid and digital infrastructure, whether directly or through joint venture or capital partnering.

“This represents a broader rebalancing and genuinely holistic approach to real assets, where buildings and the infrastructure that powers them are considered as interconnected investment opportunities rather than separate asset classes.”