INFRASTRUCTURE AS AN INFLATION HEDGE

Why infrastructure now?

Caroline Lewis, Alternative Investment Specialist, explores the case for infrastructure and how to identify the right assets to own.

Descriptive audio

00:00:00:03 - 00:00:04:02

We’ve long believed infrastructure

is an important piece of portfolios,

00:00:04:02 - 00:00:08:04

but it’s even more important today.

Because three things are colliding:

00:00:08:04 - 00:00:13:23

A more fragmented world, stickier inflation

dynamics and accelerating AI adoption.

00:00:14:11 - 00:00:17:14

And infrastructure sits

at the intersection of all three.

00:00:18:08 - 00:00:22:08

Infrastructure is important portfolios

because it can help diversification,

00:00:22:18 - 00:00:26:24

it has historically been more resilient

in inflationary environments,

00:00:26:24 - 00:00:30:19

and it can provide consistent income

because these businesses

00:00:30:19 - 00:00:34:18

are tied to essential services

and long-lived assets, often

00:00:34:18 - 00:00:38:20

supported by contracts

that run 10, 15, even 20 years.

00:00:39:20 - 00:00:42:06

Infrastructure is even more important

today.

00:00:42:06 - 00:00:44:02

The world is becoming more fragmented.

00:00:44:02 - 00:00:46:03

And that’s not just a headline risk.

00:00:46:03 - 00:00:50:07

It’s showing up in real economic

vulnerabilities, energy routes,

00:00:50:07 - 00:00:52:19

supply chains, and even critical inputs.

00:00:52:19 - 00:00:55:03

When access to energy, trade routes

00:00:55:03 - 00:00:57:22

and even key materials can't be taken

for granted,

00:00:57:22 - 00:01:00:16

governments

and companies prioritize security

00:01:00:16 - 00:01:03:13

and resilience over pure efficiency.

00:01:03:13 - 00:01:06:01

That shift tends to drive multi-year

00:01:06:01 - 00:01:09:03

investment

in domestic and allied infrastructure.

00:01:09:13 - 00:01:12:19

So think energy generation,

transmission, storage,

00:01:13:00 - 00:01:16:00

the systems that really keep our economies

functioning.

00:01:16:05 - 00:01:19:09

Fragmentation also increases

the importance of redundancy

00:01:19:13 - 00:01:23:17

and secure capacity, which is

fundamentally an infrastructure story.

00:01:24:11 - 00:01:27:19

At the same time, AI is pulling forward

the data center buildout.

00:01:28:05 - 00:01:30:23

The major hyperscalers are expected

to spend over

00:01:30:23 - 00:01:34:17

650 billion through the end of 2026.

00:01:35:05 - 00:01:37:07

But the bottlenecks are really physical.

00:01:37:07 - 00:01:41:02

Getting connected to

the grid can take 3 to 5 years.

00:01:41:03 - 00:01:45:08

So power generation, transmission and

storage become the real gating factors.

00:01:45:24 - 00:01:46:20

And despite this,

00:01:46:20 - 00:01:50:17

infrastructure is still under-allocated

in many private investment portfolios.

00:01:51:04 - 00:01:54:08

Nearly 80% of family offices report

no exposure.

00:01:54:19 - 00:01:57:21

We believe now is the time to diversify

portfolios

00:01:57:21 - 00:02:00:24

and invest behind

an evolving world through infrastructure.

00:00:00:03 - 00:00:04:02

We’ve long believed infrastructure

is an important piece of portfolios,

00:00:04:02 - 00:00:08:04

but it’s even more important today.

Because three things are colliding:

00:00:08:04 - 00:00:13:23

A more fragmented world, stickier inflation

dynamics and accelerating AI adoption.

00:00:14:11 - 00:00:17:14

And infrastructure sits

at the intersection of all three.

00:00:18:08 - 00:00:22:08

Infrastructure is important portfolios

because it can help diversification,

00:00:22:18 - 00:00:26:24

it has historically been more resilient

in inflationary environments,

00:00:26:24 - 00:00:30:19

and it can provide consistent income

because these businesses

00:00:30:19 - 00:00:34:18

are tied to essential services

and long-lived assets, often

00:00:34:18 - 00:00:38:20

supported by contracts

that run 10, 15, even 20 years.

00:00:39:20 - 00:00:42:06

Infrastructure is even more important

today.

00:00:42:06 - 00:00:44:02

The world is becoming more fragmented.

00:00:44:02 - 00:00:46:03

And that’s not just a headline risk.

00:00:46:03 - 00:00:50:07

It’s showing up in real economic

vulnerabilities, energy routes,

00:00:50:07 - 00:00:52:19

supply chains, and even critical inputs.

00:00:52:19 - 00:00:55:03

When access to energy, trade routes

00:00:55:03 - 00:00:57:22

and even key materials can't be taken

for granted,

00:00:57:22 - 00:01:00:16

governments

and companies prioritize security

00:01:00:16 - 00:01:03:13

and resilience over pure efficiency.

00:01:03:13 - 00:01:06:01

That shift tends to drive multi-year

00:01:06:01 - 00:01:09:03

investment

in domestic and allied infrastructure.

00:01:09:13 - 00:01:12:19

So think energy generation,

transmission, storage,

00:01:13:00 - 00:01:16:00

the systems that really keep our economies

functioning.

00:01:16:05 - 00:01:19:09

Fragmentation also increases

the importance of redundancy

00:01:19:13 - 00:01:23:17

and secure capacity, which is

fundamentally an infrastructure story.

00:01:24:11 - 00:01:27:19

At the same time, AI is pulling forward

the data center buildout.

00:01:28:05 - 00:01:30:23

The major hyperscalers are expected

to spend over

00:01:30:23 - 00:01:34:17

650 billion through the end of 2026.

00:01:35:05 - 00:01:37:07

But the bottlenecks are really physical.

00:01:37:07 - 00:01:41:02

Getting connected to

the grid can take 3 to 5 years.

00:01:41:03 - 00:01:45:08

So power generation, transmission and

storage become the real gating factors.

00:01:45:24 - 00:01:46:20

And despite this,

00:01:46:20 - 00:01:50:17

infrastructure is still under-allocated

in many private investment portfolios.

00:01:51:04 - 00:01:54:08

Nearly 80% of family offices report

no exposure.

00:01:54:19 - 00:01:57:21

We believe now is the time to diversify

portfolios

00:01:57:21 - 00:02:00:24

and invest behind

an evolving world through infrastructure.

Infrastructure is even more important today. The world is becoming more fragmented and that’s not just a headline risk.

Ready to explore opportunities in infrastructure? Connect with an advisor to learn more.

Contact us

Explore related topics

Alternative investing Jul 20, 2026

Meet the modern inflation hedge

Alternative Investments Jul 21, 2026

Defense and offense in one allocation

Alternative Investments Jul 21, 2026

Infrastructure: The modern inflation hedge

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.

*Required Fields

Contact us to discuss how we can help you experience the full possibility of your wealth.

Please tell us about yourself, and our team will contact you.

First Name *

Enter your First Name

> or < are not allowed

Only 40 characters allowed

Last Name *

Enter your Last Name

> or < are not allowed

Only 40 characters allowed

Location *

Select your country of residence

Address *

Enter valid street address

> or < are not allowed

Only 150 characters allowed

City *

Enter your city

> or < are not allowed

Only 35 characters allowed

State *

Select your state

> or < are not allowed

ZIP *

Enter your ZIP code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Postal Code *

Enter your postal code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Country Code *

Enter your country code

Country Code

Enter your country code

> or < are not allowed

Phone Number *

Enter your phone number

Phone number must consist of 10 numbers

Please enter a valid phone number

> or < are not allowed

Only 15 characters allowed

Phone Number *

Enter your phone number

Please enter a valid phone number

> or < are not allowed

Only 15 characters allowed

Email *

Enter your email address

Please enter a valid email address

> or < are not allowed

Only 50 characters allowed

Tell Us More About You

0/1000

Only 1000 characters allowed

> or < are not allowed

Yes, I want to learn more about J.P. Morgan Private Bank. By submitting this form, I understand the data I provide will be used to process my enquiry, in accordance with J.P. Morgan's privacy policy, and hereby accept and agree that any applicable confidentiality or secrecy requirements do not apply.

Checkbox is not selected

First Name *

Enter your First Name

> or < are not allowed

Only 50 characters allowed

Last Name *

Enter your Last Name

> or < are not allowed

Only 50 characters allowed

Country *

Select your country of residence

Phone Number *

Enter your phone number

Please enter a valid phone number

Address *

Enter valid street address

> or < are not allowed

Only 255 characters allowed

ZIP *

Enter your ZIP code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Postal Code *

Enter your postal code

Please enter a valid zipcode

> or < are not allowed

Only 10 characters allowed

Email *

Enter your email address

Please enter a valid email address

> or < are not allowed

Only 50 characters allowed

*By continuing, I understand that the data I provide will be used to process my enquiry. I accept and agree that any applicable confidentiality or secrecy requirements do not apply, in accordance with J.P. Morgan's privacy policy.

Checkbox is not selected

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 Private Bank regional affiliates and other important information in conjunction with these pages.

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.