New research from law firm A&O Shearman indicates that data centres, energy, and military technologies are the main investment channels for tech buyers. The firm's latest outlook for technology investment highlights growing demand for the infrastructure required to build and operate AI systems.
William Samengo-Turner, a partner at A&O Shearman, noted significant demand for compute, data centres, semiconductors, and energy infrastructure to support AI. This comes as major tech companies like Amazon, Microsoft, Google, and Meta are expected to spend over $700bn on AI infrastructure this year.
In the UK, London-based AI infrastructure company Nscale has raised nearly $3.7bn this year to expand its network of AI data centres. The City of London has also backed InvestConnect, a platform aiming to connect over $3tn of global capital with UK infrastructure projects.
The rapid expansion of data centres is impacting Britain's electricity network. Ofgem recently proposed new fees and stricter rules for large data centres seeking grid connections, following a rise in capacity applications from 41GW to 125GW in under a year.
Investment is also accelerating in defence technology, driven by increased military spending and a focus on AI and autonomous systems by global governments. Defence contractors have seen a record $4.1bn in venture capital funding rounds this year, with defence mergers and acquisitions rising 56 per cent in the first half of 2026.
The UK government is increasing its spending on military technology, allocating billions for drones, AI, and autonomous systems under its Defence Investment Plan. BAE Systems raised its earnings and cash flow guidance on Thursday after securing new contracts.
Meanwhile, AI is prompting a re-evaluation of how software companies are valued. Buyers are increasingly seeking companies with proprietary data, products embedded in daily operations, and high switching costs, rather than solely focusing on recurring subscription revenues.