WILMINGTON, DE — Global project finance is entering a period of rapid expansion and rising complexity as demand for energy capacity, digital infrastructure, and large-scale public works reshapes where capital is flowing and how deals are being financed.
New research commissioned by CSC, based on a survey of 200 project finance professionals worldwide, points to a market increasingly focused on long-term, capital-intensive assets and a growing reliance on private funding sources. The findings are detailed in the report Project Finance at an Inflection Point: Adapting to New Realities.
Infrastructure stands out as the dominant growth engine, with 70 percent of respondents identifying it as the strongest area for future investment. Renewables followed at 48 percent, while technology, media, and telecommunications drew interest from 43 percent. Within renewables, wind ranked highest, cited by half of respondents, while renewable natural gas and green hydrogen each drew support from 41 percent, signaling sustained momentum behind energy transition technologies.
The growth outlook is global. Europe leads expectations, with 39 percent of respondents forecasting significant expansion over the next three years, followed by the United Kingdom at 35 percent, Asia Pacific at 32 percent, and North America at 31 percent. The spread reflects a diversified pipeline rather than reliance on a single region or asset class.
Rising power consumption is a central driver, particularly from data centers supporting artificial intelligence and accelerated digitalization. Energy, TMT, transportation, social infrastructure, and critical minerals are increasingly viewed as the backbone of the next wave of project finance.
Christian Oakley-White, managing director and head of project finance at CSC, said artificial intelligence is poised to push financing needs well beyond traditional models. He said the shift from cloud services to generative AI is driving exponential growth in computing and energy requirements, creating an estimated $1.5 trillion funding gap that cannot be met by corporate balance sheets alone. Filling that gap, he said, will require a broad mix of private equity, sovereign wealth funds, bank lending, public debt markets, and private credit.
The survey shows that shift already underway. More than half of respondents now view private equity as a primary source of equity funding, alongside infrastructure funds and development finance institutions. Private credit is also gaining ground, cited by 38 percent of respondents as an increasingly important source of capital. On the debt side, private debt, infrastructure platforms, and syndicated loans are all playing significant roles.
With deal volume and complexity rising, execution risks are becoming more pronounced. Know-your-customer requirements were cited by 80 percent of respondents as the top challenge, followed by tight financing timelines and regulatory compliance. In response, project sponsors and lenders are placing greater emphasis on operational support, with real-time transparency tools and comprehensive administrative services viewed as critical to managing cross-border, multi-party transactions.
Bryan Gartenberg, managing director and global sales head of project finance and loan agency at CSC, said demand for energy, infrastructure, and digital capacity is outpacing traditional financing channels. He said private capital is increasingly filling the gap, but successful execution now depends on partners with the operational discipline and expertise to manage complexity at scale.
Together, the findings suggest a sector at a clear inflection point, where the future of project finance will be defined not just by access to capital, but by the ability to structure, govern, and execute ever larger and more intricate deals.
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