How L&G’s €600m Digital Bet Could Reshape the Future of Infrastructure—and Your Portfolio

Ever wonder how the digital economy keeps its lights on behind the scenes? Well, Legal & General—yes, that powerhouse you might associate with insurance and pensions—is making a splash where it counts: digital infrastructure. They’ve just locked down a whopping €600 million for their new Digital Infrastructure Fund (LDIF), targeting the nuts and bolts of Europe and the UK’s digital world—from data centres humming with activity to the fibre and wireless networks that keep us all connected. This isn’t just another fund; it’s a strategic leap aimed at closing a staggering €2.5 trillion funding gap by 2030. And let me tell you, their savvy moves—backed by heavyweight players and seasoned pros like Jack Colbourne and Achal Arora—signal a serious bet on the backbone of tomorrow’s tech-driven economy. So, if you’ve been wondering where the real action in infrastructure investment lies, this might just be a clue. LEARN MORE

L&G has announced the first close of its L&G Digital Infrastructure Fund (LDIF) after securing €600m in commitments and associated co-investments.

The asset manager will invest in European and UK infrastructure for the digital economy such as data centres, fibre, wireless connectivity and cloud services with the funding raised.

The new fund builds on the €607m raised for L&G’s NTR Clean Power (Europe) Fund, which earlier this year invested in a 115MW solar project in Offaly and 211MW battery and solar projects in Louth.

The fund is part of L&G’s efforts to capitalise on a €2.5tn gap in funding to meet demand for digital infrastructure by 2030. L&G expects to make a second close later this year.

Structured as an Article 8 Luxembourg-domiciled fund, LDIF has attracted a diverse mix of institutional capital, including local government pension schemes, specialist infrastructure funds and global asset managers and L&G itself.

“Infrastructure is rapidly becoming a cornerstone of global private markets, with digital infrastructure leading the charge,” said Eric Adler, chief executive of asset management at L&G.

“The successful first close of our Digital Infrastructure Fund highlights continued momentum behind our strategy to expand our private markets capabilities and reflects growing institutional appetite for essential, yield-generating assets.

“It is also a further step toward fulfilling our ambition to be a leading global investor, innovating to solve complex challenges for our clients using the power of L&G.”

Major digital infrastructure investments by L&G include backing UK-headquartered data centre developer Kao Data and a £750m hyperscale data centre in east London.

L&G has appointed Jack Colbourne, formerly partner at Arcus Infrastructure Partners, as a non-executive director on LDIF’s investment committee.

It has also hired Achal Arora as managing director of digital infrastructure investments from Macquarie, where he was managing director in the European digital infrastructure team.

“The launch of our Digital Infrastructure Fund marks a significant next step in our commitment to invest in the infrastructure that underpins the digital economy,” said Matteo Colombo, head of digital infrastructure investments at L&G.

“From AI and cloud computing, to data sovereignty and connectivity, the demand for robust digital infrastructure is accelerating across Europe.

“We’re leveraging our deep sector expertise, further enhanced with the recruitment of Jack and Achal, and strategic partnerships to identify and scale investments that offer strong long-term value for investors while supporting innovation, inclusion and economic resilience.”

Photo: Eric Adler. (Pic: Supplied)