Depth and breadth make water a long-term investment opportunity
20 AUG, 2025
By Robeco
By Dieter Kuffer, Portfolio Manager, Robeco Sustainable Water Strategy, Robeco
Unlike the hype and euphoria surrounding artificial intelligence (AI), water investments may seem calm and unremarkable. Yet, while markets are carried away by AI’s potential, the long-term growth opportunities in water infrastructure remain largely overlooked.
Across several regions of the world, overlooked stories reveal powerful momentum in spending on water-related projects. Funding flows are significant, involving multi-decade, multi-billion-euro investments that span the entire water value chain.
Italy: Flood prevention and wastewater management
In parts of Italy, heavy rains and flooding have become a chronic issue. Bologna and Ravenna in Emilia-Romagna were the latest to suffer severe damage from torrential rains. Following the September 2024 floods, regional authorities allocated €1.2 billion to more than 100 projects aimed at rebuilding damaged water networks and constructing flood-prevention infrastructure.
In other areas, heatwaves and drought have worsened Italy’s chronic water scarcity. To ease supply issues, the government has earmarked €600 million to modernise sanitation systems, encouraging greater use of recycled wastewater in industry. Calvisano, near Brescia, recently inaugurated an €81 million wastewater treatment plant to recycle water for agriculture and manufacturing. Over the next five years, €321 million will also be invested in distribution upgrades and smart metering to cut water losses.
Switzerland: Preparing for extreme weather
Zurich is investing €186 million to divert rainwater from the River Sihl into Lake Zurich via a 2km tunnel. This aims to minimise the risk of flash flooding, which could cost up to €7 billion. Though such floods are rare (once every 500 years), the IPCC warns that climate change is making extreme weather more frequent and severe.
Germany: When H₂O meets AI
In Dresden, €630 million is being invested to secure water supply for Europe’s largest semiconductor hub until 2038. With Silicon Saxony’s water demand expected to double or even triple, investments will channel and treat water from the Elbe for industrial use. Around 80–90% of extracted water will be treated and safely returned, with major works including canals, aeration basins, digesters, and sludge management facilities.
France: Tackling PFAS pollution
Île-de-France is stepping up efforts against micro-pollutants. SEDIF, the regional water utility, has committed €1 billion to advanced purification systems to remove PFAS chemicals from drinking water. Using nanofiltration and low-pressure reverse osmosis, the technology will capture particles 100,000 times smaller than a human hair. Three major treatment plants around Paris are being upgraded, with full operation expected by 2032.
England and Wales: Unlocking investment to fix water problems
Chronic underinvestment has left England’s water infrastructure outdated and leaky, with one-fifth of treated water lost — around 1 trillion litres annually. Prolonged heatwaves in 2022 and 2023 also drained reservoirs to critically low levels, leaving London with just three and a half weeks of reserves.
To address this, Ofwat’s latest Asset Management Plan (AMP8) has approved €126 billion (£104bn) of investment over five years — a 76% increase over the previous cycle. Plans include new reservoirs to capture and store rainfall, the first such projects in 30 years, designed to boost resilience against future droughts.
