Digital infrastructure is entering a new era where economics, capital, and policy matter as much as technology. Rising capital costs, shifting investor priorities, and regulatory intervention are reshaping how towers, fiber, data centers, and satellite networks are built and scaled.
Market Perspectives from Mobile World Congress
At this year’s Mobile World Congress in Barcelona, PwC invited senior leaders from investors, InfraCos, suppliers, and regulators to debate where value will flow next and how the market can be shaped. The discussion offered candid perspectives and sharp insights into how digital infrastructure is being connected, computed, and financed, highlighting key investment trends, regional differences, and the growing importance of sovereignty and resilience in an increasingly multipolar and uncertain world.
Amongst other PwC leaders, the discussion was attended by
- Nicki Wakefield, PwC Global Clients and Industries Leader
- Wilson Chow, PwC Global TMT Industry Leader
- Lori Driscoll, PwC Global Advisory TMT Industry Leader
- Vinish Bawa, PwC Telecom Sector Leader India
External panelist and key participants included
- Benji Coetzee, Chief Strategy & Growth Officer, KPN
- Bruno Jacobfeuerborn, CEO, DFMG
- Dr. Christine Knackfuß-Nikolic, Chief Sovereignty Officer, T-Systems
- Gopa Kumar Krishna, CEO, RANext Technologies
- Nicolas Mahler, Interim CEO and CFO, Vantage Towers
- Steven Sonnenstein, Senior Managing Director, DigitalBridge Investment Management
- CB Velayuthan, Former CEO/ Board Member, Digital Connexion/ Equinix/ Nokia
Investment Trends
Total investment in AI infrastructure for 2026 by Amazon, Alphabet, Microsoft, and Meta is likely to exceed 800 billion USD. As Steven Sonnenstein, Senior Managing Director at DigitalBridge Investment Management stated “there is not enough money on earth to pay for all this infrastructure”.
The amount investment into data centers is roughly two to three times the global investment in network infrastructure. During our discussion in Barcelona, participants debated rightfully of this is the best balance between investment in data center and network infrastructure.
Ultimately, the goal needs to be to bring AI capabilities to the end user, whether in offices, factories, or on the move. Although network infrastructure may be considered a stable but less exciting investment, mobile networks, fiber networks, and satellites offer relatively predictable returns. Currently, AI and data centers appear to be somewhat over-invested, while networks – including fiber, towers, mobile, and satellites – should receive more focus to deliver AI to end users. However, for this an improved monetization model for telecom operators is needed in an AI-driven world, given high debt level and limited profitability shown by telcos and their infracos today.
Regional Perspectives
During our discussion in Barcelona, India’s approach to investing in digital infrastructure received significant attention. As CB Velayuthan, former CEO at Digital Connexion as well as former Board Member at Equinix and Nokia pointed out, India is rapidly advancing in AI, supported by its swift development in mobile and fiber networks. Its frugal strategies offer practical lessons for other regions.
In the meanwhile, US accounts for about 40-50% of global digital infrastructure investments, driven primarily by rapid expansion in data centers, but also by investment into highly profitable mobile and fixed network operators.
In comparison to the focus on India, the US, and China, Europe seems undervalued by investors despite offering a stable and secure investment environment. As Nicolas Mahler, Interim CEO and CFO at Vantage Towers emphasized, “TowerCo” infrastructure may be seen as unexciting but remains a rewarding investment. His recent experience raising 2 billion EUR revealed that TowerCos in Europe, while perceived as boring, are in fact highly investable.
Sovereignty & Resilience
Discussing digital infrastructure inevitably involves addressing the growing demand for greater sovereignty. Sovereignty can be interpreted in various ways. Dr. Christine Knackfuß-Nikolic, Chief Sovereignty Officer at T-Systems, offered an analogy: “Sovereignty in data and infrastructure is like a race car. You may want to own it, but it won’t serve you well unless you can operate it and ensure the supply of spare parts.” Having only one car without backup is risky.
A key conclusion from our discussion in Barcelona was that both sovereignty and resilience are necessary, with the latter typically implying safety in numbers. Telecom operators may be well positioned to collaborate with data center providers, distributing assets regionally to achieve this safety. However, the market is not yet ready to pay the higher costs associated with resilience. Nonetheless, given the current geopolitical uncertainty, telcos, InfraCos and others will increasingly need to address resilience in the future. True digital sovereignty requires not only ownership but also operational capability and supply chain control. Resilience demands investment in redundancy.
Epilog
A special thank you goes to our panelists and to more than 100 distinguished guests for the engaging discussions that truly brought the topic to life. We hope the insights provided during our discussion in Barcelona and recapped in this article offer food for thought. If you wish to continue any conversations sparked in Barcelona – whether on digital infrastructure, financing strategies, or broader strategic topics – please don’t hesitate to reach out. We’d love to keep the dialogue going.
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