RAPID FIRE: Is Water the Next Big Infrastructure Play?

Why It Matters

Recognizing water and decarbonization as next‑stage infrastructure themes can unlock high‑growth, resilient investments while avoiding oversupply pitfalls.

Key Takeaways

• Water infrastructure and circular economy remain underappreciated growth themes.
• Higher rates serve as a quality filter, not merely a headwind.
• Post‑power demand focus shifts to decarbonization and net‑zero buildout.
• Oversupply risk exists; active allocation prevents excess infrastructure.
• Capital cycles demand seizing opportunities before they disappear.

Summary

In a rapid‑fire interview, infrastructure strategist Mark outlines emerging themes, emphasizing water and the circular economy as overlooked growth drivers.

He argues that rising rates act more as a quality filter than a pure headwind, and while power demand will dominate the next decade, the subsequent frontier will be decarbonization and net‑zero infrastructure build‑out.

Mark warns that oversupply is possible—‘we can build too much infrastructure’—and stresses the need for active allocation to avoid sectoral gluts. He also cites his experience across three capital super‑cycles, noting, ‘you need to maximize the opportunity because they don’t last forever.’

For investors, the takeaway is to broaden exposure to water assets, monitor rate environments, position for decarbonization spend, and stay vigilant against overbuilding, ensuring capital is deployed where quality and scarcity align.

Original Description

Livewire sat down with Mark Jones of Resolution Capital for a rapid-fire round of our Growth Series, diving into the infrastructure supercycle, the risks of oversupply, and why water might be the next big growth play.

Watch the full interview here: https://bit.ly/4cUsiq4