Research
Research
Reports and analyses on the risks behind infrastructure value.
Articles
23 articles
The Factories of the AI Age: How Data Centres Are Reshaping Electricity, Risk, and Regulation
AI is turning data-centres into the factories of the digital age — reshaping electricity demand, regulation, and capital flows. Their value now hinges on a mix of risks: price volatility, grid constraints, policy uncertainty, renewable access, and supply-chain exposure. Understanding how these forces interact is essential for investors navigating the next era of AI infrastructure.
Jorge Cárdenas
6 min read
The Repricing of Infrastructure: How AI is changing the logic of capital allocation in the physical world
AI is transforming both digital and physical worlds. Large-scale computation and LLMs are launching a new infrastructure era—shaped by where we build, invest, and how we value assets. Vallorii sees two forces: soaring demand for power, land, and grids, and AI’s analytic power redefining risk and value—together, they’re repricing infrastructure toward intelligence.
Jorge Cárdenas
6 min read
Real markets: What capital market inelasticity means for infrastructure investments
Capital flows, not theory, drive valuations. Our latest analysis gets to the core of Vallorii’s work: making sense of inelastic markets and pricing infrastructure equity for the next decade of transition and resilience.
Lennart Baumgärtner
8 min read
Roundtable 17 September: Highlights
Our September 2025 roundtable brought together a full house of senior investors, regulators, utilities, and policymakers to explore how the macroeconomic environment since the 2022 structural break is reshaping infrastructure investment - and what to do about it. We set out to answer one central question: Can ambitious infrastructure investment still be delivered in today’s macro environment? Macroeconomics underwent a structural shift in 2022, increasing cost of capital just when investment...
Sandy Arbuthnott
2 min read
How the UK’s high interest rate environment could re-price infrastructure
High interest rates and investor backlash risk missing capital goals if government can't lock in stability and new financing mechanisms
Lennart Baumgärtner
5 min read
Choice of major water project regulation impacts required equity returns by 220-320bps
Executive summary: Britain’s water‑supply “megaprojects” are arriving: 30 schemes with ~£50bn of lifetime spend, most to be let via...
Lennart Baumgärtner
4 min read
Using CAPM to regulate infrastructure: A critique
CAPM: a 1960s relic still steering today’s £200 bn UK infrastructure. Regulators continue to fix allowed returns with the Capital Asset...
Robert Ritz
1 min read
RIIO-3 Draft Determination: Step-by-step guide to calculating Cost of Equity
Ofgem’s RIIO-3 Draft Determinations, released on 1 July 2025, set out headline cost-of-equity allowances. But the CAPM methodology to...
Robert Ritz
6 min read
Water DPC projects may require 9.2-9.6% Cost of Equity
In 2015, the Thames Tideway Tunnel cleared at roughly 4% real Cost of Equity (CoE); this month, fresh capital for Sizewell C was priced...
Lennart Baumgärtner
3 min read