The Global AI Divide: Infrastructure Gaps and Investment Opportunities

The world is racing to build the infrastructure needed to power the next era of artificial intelligence. But this race is not equal. While sovereign wealth funds (SWFs) and private capital are pouring billions into data centers, fiber networks, and AI startups in the U.S. and Europe, vast swaths of the globe-particularly in Africa, Southeast Asia, and Latin America-remain underserved. This divide is not just a technical or economic issue; it's a geopolitical one. As AI becomes the backbone of global competitiveness, the regions that lack the infrastructure to support it risk being left behind.

The Global AI Infrastructure Surge: SWFs and Digital Infrastructure

Sovereign wealth funds have become key players in the AI infrastructure boom. From 2023 to 2025, SWFs invested $9.4 billion across 53 deals, with $5.4 billion directly allocated to digital infrastructure-a 54% increase from 2023, according to a 2025 digital infrastructure report. This surge reflects a strategic shift: SWFs are no longer just passive investors. They're building the physical and digital scaffolding of the AI economy.

The Middle East, in particular, has emerged as a major force. Mubadala Capital's $1.4 billion investment in Crusoe, an AI data center startup, and ADIA's co-investment in Telecom Italia's FiberCop Spa highlight how SWFs are prioritizing infrastructure that supports AI's insatiable demand for compute power and connectivity, according to a PitchBook analysis. By 2030, the global data center market is projected to reach $652 billion, driven by SWFs and private actors alike, per an Observer projection.

But the lion's share of these investments is flowing to the U.S. From January to August 2025, SWFs participated in $46.4 billion of AI venture deals, with 93% of the funding directed toward U.S. startups, the PitchBook analysis found. This concentration is not accidental. The U.S. offers a mature tech ecosystem, regulatory clarity, and a concentration of AI talent. Yet it also exacerbates the global divide.

The Global Divide: Underrepresented Regions and Their Gaps

The AI infrastructure gap is most pronounced in Africa, Southeast Asia, and Latin America. In these regions, the lack of reliable energy, high-speed internet, and data storage facilities creates a bottleneck for AI adoption. For example, while South Africa has seen investor confidence in AI-driven initiatives-such as its $57.76 million inflation-linked bond auction-its debt-to-GDP ratio exceeds 60%, complicating long-term infrastructure planning, according to a Bitget analysis.

In Southeast Asia, the rise of state-owned investment funds like Indonesia's Danantara and the Philippines' Maharlika Wealth Fund signals a shift toward strategic, government-led development, as noted in an East Asia Forum piece. These funds are investing in logistics, clean energy, and digital infrastructure, but their scale and reach remain limited compared to global giants like Singapore's Temasek.

Latin America, meanwhile, faces a dual challenge: weak governance and underdeveloped SWF frameworks. While countries like Guyana are exploring how to transition their natural resource funds into long-term development vehicles, the region's SWFs are still in their infancy, according to the State of Global SWFs report. This leaves a vacuum in funding for AI infrastructure, despite the region's growing demand for smart agriculture, energy optimization, and logistics automation.

Bridging the Divide: Sovereign Wealth Fund Strategies in Underrepresented Regions

Despite these challenges, SWFs are beginning to address the AI infrastructure gap in underrepresented regions. In Africa, Strategic Investment Funds (SIFs) in Nigeria, Egypt, and Senegal are partnering with multilateral institutions to fund solar power plants, toll roads, and healthcare systems, as detailed in the IE Sovereign Impact Report. For instance, Egypt's Sovereign Fund of Egypt (TSFE) has prioritized renewable energy projects, aligning with global sustainability goals while building the foundational infrastructure for AI, a trend also noted in the State of Global SWFs report.

In Southeast Asia, the Philippines' Maharlika Wealth Fund has taken its first steps by investing in the National Grid Corporation of the Philippines, a move that could stabilize energy supply for AI-driven industries (the East Asia Forum piece covered this development). Similarly, Indonesia's Danantara is consolidating state-owned enterprises to create a unified platform for infrastructure development, as earlier reporting in the East Asia Forum piece explained.

Latin America's SWFs are also experimenting with new models. Guyana's Natural Resource Fund, bolstered by offshore oil revenues, is exploring how to channel capital into AI-ready infrastructure like cloud computing hubs and smart grids, a proposal discussed in the State of Global SWFs report. These efforts, though nascent, highlight a growing recognition that AI infrastructure is not just a tech issue-it's a development imperative.

Investment Opportunities and the Future of the AI Landscape

For investors, the AI divide presents both risks and opportunities. In underrepresented regions, the lack of infrastructure creates a "first-mover advantage" for SWFs and private capital willing to build from scratch. For example, partnerships between SWFs and local governments in Africa could unlock AI applications in agriculture and healthcare, sectors with massive unmet demand.

However, these opportunities come with caveats. Political instability, regulatory uncertainty, and currency volatility can undermine long-term returns. As one analyst noted, "Investing in AI infrastructure in emerging markets is like building a bridge in a monsoon-plan for the unexpected," according to a TS2 Tech article.

The key to success lies in collaboration. SWFs are increasingly forming alliances with development finance institutions (DFIs) and private equity firms to share risk and expertise. For instance, the Nigerian Sovereign Investment Authority (NSIA) has partnered with the African Development Bank (AfDB) to co-finance solar power projects, as highlighted in the State of Global SWFs report. Such partnerships could serve as blueprints for scaling AI infrastructure in underrepresented regions.

Conclusion

The global AI divide is not inevitable-it's a choice. Sovereign wealth funds have the capital, the vision, and the geopolitical clout to bridge this gap. But they need to act strategically, balancing short-term returns with long-term development. For investors, the message is clear: the next decade of AI growth will be defined not just by who builds the best algorithms, but by who builds the best infrastructure.