Singapore’s sovereign wealth fund GIC is increasing investments in energy infrastructure, driven by declining renewable energy (RE) costs and AI-driven electrification demand.

In a new report, GIC highlighted opportunities in grid upgrades, power equipment supply chains, and regulated utilities, citing stable regulatory frameworks and inflation-protected cash flows as key advantages. It also backs dispatchable generation and battery storage to ease grid congestion.

“With the number of data centres growing rapidly, we have invested in companies that provide energy management and cooling solutions to data centres to lower both their power consumption and carbon footprint,” GIC said.

“For example, in the construction sector, companies specialising in insulation help to reduce power needs for heating and cooling. In the manufacturing sector, we see value in industry leaders in steam and compression technologies offering products that reduce customers’ total lifetime energy needs,” it added.

For hard-to-abate sectors, GIC supports emerging green technologies like green ammonia and long-duration energy storage, favoring firms with cost or tech advantages. Additionally, it invests in energy efficiency, including smart metering, data center cooling solutions, and industrial steam/compression technologies to cut energy use.

The fund sees sustained growth in energy transition assets, aligning with global decarbonisation trends. [Source: GIC]