Cybersecurity Tops List of Infrastructure Deal Risks

Why It Matters

Cyber risk now determines whether infrastructure transactions close, forcing investors to allocate significant resources toward mitigation and reshaping deal dynamics.

Key Takeaways

• 76% cite cyber risk as top deal‑breaker
• 65% of investors experienced infrastructure deal failures
• Cyber resilience now essential for transaction approval
• 79% still view telecom infrastructure as attractive
• Investors allocating more resources to cyber mitigation

Pulse Analysis

The latest S‑RM survey of 150 global investors reveals that cybersecurity has eclipsed regulation and sustainability as the leading cause of collapsed digital and telecom infrastructure transactions. Seventy‑six percent of respondents pinpointed cyber‑related worries—ransomware, OT vulnerabilities, and legacy‑system flaws—as the decisive factor, while 65 percent reported at least one deal failure in the past three years. This shift reflects the sector’s growing dependence on high‑speed connectivity and the expanding attack surface of networked operational technology, turning cyber resilience into a deal‑making prerequisite.

Investors are responding by tightening due‑diligence protocols and earmarking larger budgets for cyber risk mitigation. Third‑party supply‑chain assessments, real‑time threat monitoring, and insurance against extortion are now standard clauses in term sheets. The heightened focus also reshapes valuation models, as buyers discount assets with outdated security architectures and reward sellers who demonstrate robust incident‑response frameworks. Consequently, firms that integrate zero‑trust principles and regularly patch OT systems gain a competitive edge, while those lagging risk exclusion from future capital flows.

Despite the heightened threat landscape, confidence in the telecom infrastructure market remains strong—79 percent of surveyed investors still rate the sector as the most attractive opportunity through 2030, outpacing energy, transport and ESG‑focused assets. This optimism is driven by the relentless demand for 5G rollout, edge computing, and private‑network services, which promise sizable revenue streams. To capitalize, market participants must balance aggressive growth ambitions with proactive cyber‑security strategies, ensuring that resilience becomes a value‑adding feature rather than a deal‑breaker.