As we look ahead to 2026, global investment trends are being shaped by three major spending initiatives that show no signs of slowing down.
In fact, each is accelerating, creating significant opportunities and challenges for investors. At Oakglen Wealth, we believe these themes will define the market landscape in the coming year.
Artificial Intelligence: Driving Innovation
The first and most widely discussed theme is AI. The big four technology giants Alphabet, Amazon, Meta and Microsoft, are expected to spend over $400 billion in 2026 on AI infrastructure, up from $300 billion this year. This surge in spending will drive demand for data centres to host chips and servers, and for the energy required to power them. While the United States remains the dominant player, China, the UK, Europe and several Gulf states are investing heavily to secure their place in the AI race. The biggest constraint will be electric power availability, which links directly to our second theme.
Electrification: Powering the Future
The global shift towards electrification through electric vehicles, renewable energy integration and increased cooling and heating demand, requires massive upgrades to ageing power grids, many of which are over 50 years old. These grids are unable to adequately incorporate renewable sources of energy, as highlighted by the recent power outage in Spain caused by a surge of solar power. Major investment is needed to increase power production and upgrade grids worldwide. This will require steel, concrete and, most critically, copper. The mining industry has underinvested in capital expenditure over the past decade, leaving it ill-prepared to meet this new demand. Prices are already rising, with copper up 25 per cent year to date, and this trend is likely to continue as electrification accelerates.
Global Defence Spending: Securing Stability
The third theme is the structural rise in global defence spending. NATO members have agreed to target defence expenditure of 3.5 per cent of GDP, rising to as much as 5 per cent when related infrastructure is included. This commitment is independent of general economic conditions and reflects the ongoing need to upgrade weapons systems, embrace new technologies and replenish stocks depleted by the war in Ukraine. The United States, the world’s largest defence spender, is planning further increases, while China continues to expand its military capabilities. Defence manufacturing also requires significant raw materials, adding further pressure on commodity markets.
Funding and Market Implications
These spending initiatives are largely funded by debt issuance. AI investment has been an exception until now, as mega-cap technology firms have relied on internal funds, but this is changing as they begin issuing significant amounts of debt.
Governments are boosting fiscal spending to pay for defence, and industry is borrowing heavily to fund improvements to energy infrastructure. This dynamic will steepen yield curves and support commodity prices.
While these trends are positive for growth, they also bring inflationary pressures and potential employment challenges as AI adoption accelerates. We may find ourselves in a world characterised by improving growth, persistent inflation and structural shifts in labour markets.
Positioning for the Future
These structural shifts are likely to reshape global markets over the next decade, creating both opportunities and risks. Investors who position portfolios to capture growth in infrastructure, energy transition, commodities and defence, while maintaining selective exposure to AI infrastructure, may benefit from these trends. At the same time, vigilance around inflation, debt sustainability and broader macroeconomic dynamics will remain essential to navigating this evolving landscape.
Oakglen Wealth provides a personalised investment service powered by market-leading technology. As an independent firm, we operate with uncompromising integrity, putting your interests first. Our expert team draws upon many years of experience to provide tailored advice and guidance to help you achieve your financial goals. For more information get in touch on email or find us on LinkedIn.
Pictured: Jeff Brummette, Chief Investment Officer at Oakglen Wealth
