Key topics and selected investment opportunities in the water sector for 2026

2025 was a challenging year. Uncertainty about geopolitical developments and trade relations weighed on the investment environment. This was felt by many service and technology providers in the water sector, both in terms of results and share prices. However, the global water sector remains structurally attractive. Regulatory requirements, the replacement of ageing infrastructure, climate adaptation and the increasing demand for water in industry and digitalization are driving investment along the entire value chain.

The end markets for water, construction, industry, agriculture and the public sector are certainly cyclical. However, the decisive factor is that the headwinds are never structural. The small-scale nature of the sector, which has a strong regional and national character, means that these cycles repeatedly open up attractive investment opportunities. For long-term investors, this results in opportunities based on fundamental trends.

Infrastructure: Clean water as a global priority

The global demand for clean drinking water is constantly increasing. Population growth, urbanization and increasing water stress mean that large-scale water infrastructure projects are becoming more and more important.

An example of this is Webuild a global leader in the field of large-scale water infrastructure projects. Under the term “Clean Water”, the company bundles activities such as the construction of desalination plants and modern wastewater treatment plants in various parts of the world. This area is becoming increasingly strategically important for Webuild and now accounts for around 25% of incoming orders.

The trend towards investment in clean water is therefore clearly intact. It is driven not only by the structural increase in demand, but also by government investment programs and stricter regulatory requirements. For companies with technical expertise, project experience and a global presence, this creates long-term growth opportunities, particularly in the area of efficient, safe and sustainable water infrastructure.

Building and climate resilience: protection against extreme weather events

The increase in heavy rainfall, flooding and droughts is bringing the issue of climate resilience increasingly into focus. Investments in rainwater management and sustainable drainage systems are central to this.

Advanced Drainage Systems is the market leader in stormwater management in the USA. Many industries increasingly need to use rainwater harvesting systems to reduce their dependence on scarce municipal water resources. The company benefits from this trend in the long term.

Another relevant player is Georg Fischer. The company is often mistakenly perceived as a traditional pipe manufacturer, but actually has a technological edge in fittings, valves and control systems. These are key components that are crucial for efficient, safe and durable water networks.

Data centers and digitalization: water as a key resource

The growth of data centers remains a key issue, particularly in the USA. Digitalization, cloud computing and artificial intelligence are driving the expansion of infrastructure and therefore also the need for water for cooling, fire protection and treatment.

Here we see opportunities at ANDRITZ a global market leader in water treatment, especially in the areas of sludge treatment and waste solutions.
The US pump manufacturer Gorman-Rupp has an underestimated exposure to data centers and AI applications. Among other things, the company supplies pumps for fire protection systems and liquid cooling systems.

Will data centers dry up the world?

This question is often asked. The short answer is: No.

Although the water requirements of data centers are estimated to be around 1,000 million cubic meters per year by 2030, this amount is manageable in a global context.

For comparison:

• The currently largest desalination plant(Shoaiba in Saudi Arabia) can produce this amount of water within a year.
• This amount of water flows through the Rhine near Basel in around 11 days.
• The Great Lakes evaporate this amount of water within about 60 hours.
• The daily precipitation on land masses corresponds to this amount in around 5 minutes.

The decisive factor is therefore not the absolute quantity of water, as the global water supply remains constant. Rather, it is about efficient use, treatment and distribution – and it is precisely in these areas that the Tareno Global Water Solutions Fund makes targeted investments. Because: “Water scarcity is not a law of nature, but the result of a lack of infrastructure – and that is precisely why it is investable.”

Conclusion: Think long-term. Invest in a targeted manner.

The water sector remains characterized by long-term structural drivers: Infrastructure needs, climate adaptation, urbanization and digitalization. The Tareno Global Water Solutions Fund will continue to focus on companies that impress with their technological expertise, market leadership and robust demand prospects.

Our approach remains unchanged: long-term thinking, disciplined investment and targeted involvement in areas where water solutions create sustainable economic and social added value.