The transformation of global trade and an aging workforce are central to the infrastructure outlook.

• Labor shortages and new overtime rules for truck drivers have become major considerations in the location of new builds, as well as the conversion of older infrastructure, as companies seek modernized logistics facilities capable of implementing automation.

• Major tech companies have pledged to invest billions of dollars in Japan to expand AI and cloud infrastructure, supporting a positive outlook for data centers.

• Japan’s real estate market is an appealing investment destination amid healthy yield spreads, market stability, and still-low interest rates.

Shifting trade patterns, the digitization of the global economy, and the quest for reliable chip production are central themes.

• Countries with an established factory sector and existing trade ties with the West are well positioned to capitalize on the fragmentation of the global economy.

• Data center growth is strong in up-and-coming markets like Malaysia amid supply constraints in Singapore, which remains a major hyperscale market that offers attractive rents for investors.

• Urban population growth in major cities such as Singapore is increasing demand for rental housing to address supply shortages and affordability challenges.

Urbanization, electrification, and increased manufacturing activity are part of India’s growth story.

• Electrical buildout, the need for better roads and airports, and an improved rail network will all be part of the infrastructure push that will be paramount in helping India achieve its lofty economic goals.

• Infrastructure opportunities should arise from an increase in air traffic and tourism. For such a large country, the penetration rate for flying remains small.

• Many industrial companies anticipate strong growth, and expanding manufacturing capacity will no doubt lead to a corresponding surge in power demand and related infrastructure needs.