Skip to Main Content
Contact us

  • The Private Bank’s mission is to build, preserve & transform our client’s wealth.

  • We work with a variety of clients to help them achieve their unique ambitions.

  • Our world-class economists, strategists, and investment specialists share their timely ideas and perspectives.

  • We have worked with clients for more than 200 years to help them achieve their unique ambitions.

Contact us
What We Do
Who We Serve
Insights & Advice
About Us
INFRASTRUCTURE AS AN INFLATION HEDGE

Infrastructure: The modern inflation hedge

Infrastructure can offer inflation-sensitive cash flows and potential income-making it a compelling complement to gold. And in an energy-hungry, fragmented world, demand for essential asset may keep rising. It’s defense and offense in one allocation.

Descriptive audio

Beyond gold: Adding an income dimension

Gold has long been one way investors have sought inflation hedges. Infrastructure offers another real-asset exposure—often with inflation-sensitive cash flows and potential income.
01 - Data centers need energy

AI’s appetite is staggering

U.S. power demand is set to grow 662 TWh this decade, more than Texas and California combined generate in a year. Data centers need reliable, around-the-clock power.
02 - AI NEEDS POWER

The constraint isn’t chips—it’s electrons

There’s a five-year backlog to add new power to the grid, while 70% of transmission lines are over 25 years old. Building capacity is a multi-year investment cycle.
03 - SUPPLY CHAINS NEED REDUNDANCY

Resilience over efficiency

A fragmenting world is rewiring trade. Global conflict and the potential for more may mean more onshoring, which drives real investment in factories, logistics and grid equipment.
04 - GOVERNMENTS NEED STABILITY

Defense priorities now include energy security, infrastructure, and industrial capacity.

NATO’s updated targets imply ~3.5% of GDP on defense plus up to 1.5% on broader defense- and security-related investment—supporting critical infrastructure, network defense, and more. Public capital is flowing into hard assets.

The hedge

Infrastructure assets—power, grids, data centers—often carry pricing power that rises with inflation. As cash quietly loses value, these real assets tend to hold it, complementing the defensive role gold has long played and participating in a durable trend. One allocation, two roles.

Average monthly performance in periods of high inflation (2022-2025)

Bar chart titled “Average monthly performance in periods of high inflation.”
Source: Bloomberg, BlackRock, March 2025. Analysis shows monthly returns of various indices in months of high inflation as defined by inflation being in the top quintile of periods on a rolling 36-month basis. Indices used, Global Infrastructure: S&P Global Infrastructure Index, commodities: S&P GSCI Total Return Index, US Equity REITs: FTSE Nareit Equity REITs Index, short TIPs” ICE US Treasury 0-5 Year Inflation Linked Bond Index, BBG US Aggregate Index.” Past performance is not a guarantee of future results. It is not possible to invest directly in an index

The tailwind

But this asset class isn’t just a safeguard. The biggest forces reshaping the economy right now—AI and its power needs, supply chains moving home and increased government security spending—are a boon for infrastructure assets. Demand is expected to grow for years.

AI and power

70% of transmission lines are over 25 years old, with a five-year backlog to connect new power1
70%

Supply chains

Annual U.S. tech capex, much of it onshoring2
$500B+

Security

NATO’s new core defense spending target3
3.5% of GDP

The takeaway

Infrastructure packs a one-two punch: hedge against inflation and a stake in the trends driving markets forward.
Ready to put infrastructure to work as an inflation hedge? Contact us to explore what fits your goals.
Contact us
  • Source: The White House. Fact Sheet: The Biden-Harris Administration Advances Transmission Buildout to Deliver Affordable Clean Energy. November 18, 2022
  • Source: Empirical Research Partners. The Hyperscalers: Making the Jump to Hyperspace? August 11, 2025.
  • Source: NATO. Data as of June 2024 and June 2025.

Explore related topics

KEY RISKS

Private investment funds (including, without limitation, hedge funds, funds of hedge funds, private equity funds, real estate funds, etc.) are subject to special risks, including risk of loss of the entire investment and is suitable only for investors with sufficient knowledge and sophistication to evaluate the merits and risks of such investments. As a reminder, private investment funds often engage in leveraging and other speculative investment practices that may increase the risk of investment loss. These investments can be highly illiquid, and may not be required to provide periodic pricing or valuation information to investors, and may involve complex tax structures and delays in distributing important tax information. Distributions are not guaranteed and may be modified at the Fund Board’s discretion. These investments are not subject to the same regulatory requirements as mutual funds; and often charge high fees (performance fees in addition to management fees). Further, any number of conflicts of interest may exist in the context of the management and/or operation of any such fund. For comprehensive details around unique set of risks for specific alternative investments, please refer to the applicable offering memorandum.

Investing in alternative assets involves higher risks than traditional investments, including, without limitation, limited liquidity and valuation risk, and is suitable only for investors with sufficient knowledge and sophistication to evaluate the merits and risks of such investments. Alternative investments should not be deemed a complete investment program and distributions are not guaranteed. They may not be tax efficient, and an investor should consult with their tax professional prior to investing. Alternative investments often have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the investment loss or gain—including risk of loss of the entire investment. For comprehensive details around unique set of risks for specific alternative investments, please consult the offering memorandum.

IMPORTANT INFORMATION

This material is for information purposes only, and may inform you of certain products and services offered by private banking businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations.

GENERAL RISKS & CONSIDERATIONS

Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan team.

NON-RELIANCE

Certain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.

Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

LEARN MORE About Our Firm and Investment Professionals Through FINRA BrokerCheck

 

To learn more about J.P. Morgan’s investment business, including our accounts, products and services, as well as our relationship with you, please review our J.P. Morgan Securities LLC Form CRS and Guide to Investment Services and Brokerage Products. 

 

JPMorgan Chase Bank, N.A. and its affiliates (collectively "JPMCB") offer investment products, which may include bank-managed accounts and custody, as part of its trust and fiduciary services. Other investment products and services, such as brokerage and advisory accounts, are offered through J.P. Morgan Securities LLC ("JPMS"), a member of FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. JPMCB, JPMS and CIA are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

 

Please read the Legal Disclaimer (for J.P. Morgan regional affiliates and other important information) and the relevant deposit protection schemes.

 

DEPOSIT PROTECTION SCHEME 存款保障計劃 JPMorgan Chase Bank, N.A.是存款保障計劃的成員。本銀行接受的合資格存款受存保計劃保障，最高保障額為每名存款人HK$500,000。 JPMorgan Chase Bank N.A. is a member of the Deposit Protection Scheme. Eligible deposits taken by this Bank are protected by the Scheme up to a limit of HK$500,000 per depositor.
INVESTMENT AND INSURANCE PRODUCTS ARE: • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, JPMORGAN CHASE BANK, N.A. OR ANY OF ITS AFFILIATES • SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED
Bank deposit products, such as checking, savings and bank lending and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC. Not a commitment to lend. All extensions of credit are subject to credit approval.