Digital Infrastructure unlocking Development Finance Institutions initiatives in emerging markets.

I enjoy working with like-minded people who view digital infrastructure as a key enabler in emerging markets, and I am amazed by how cooperative and supportive the European Development Finance Institutions are.

I hosted together with Detecon a two-day workshop with BII, DEG, EBRD, Finnfund, KFW-IPEX, and Proparco, covering a broad range of topics. On the first day, we discussed data centers, terrestrial networks with a focus on resilience, and the impact of non-terrestrial networks. The second day focused on how these developments apply to various emerging markets, including APAC, Africa, LATAM, and emerging Europe.

Here are my key takeaways:

• Data Centers: The sector is experiencing rapid growth. Will emerging markets be the next frontier for data center development? How will challenges like energy and data sovereignty affect this growth? The big question is how DFIs can fulfill their mandates by investing in this asset class.
• Resilience: A resilient global network infrastructure relies heavily on expanding terrestrial networks with local and regional exchanges.
• Regional Variances: Emerging markets have varying demands, particularly regarding CAPEX for newer technologies like 5G. In low-ARPU and rural markets, 4G will continue to have the most significant impact.
• Fiber vs. RAN CAPEX Profiles: Fiber builds and Radio Access Network (RAN) builds differ in CAPEX profiles—RAN requires more frequent CAPEX refresh, while fiber investments are capitalized over a much longer period.
• Cross-Border Routes: Europe depends heavily on alternative cross-border routes through emerging European countries toward the east, seeking alternatives to submarine routes through the Red Sea.