- Cyber risk is the biggest factor influencing investment decisions in the Digital & Telecoms sector, cited by 76% of investors
- Cyber security is the top non-financial risk area attracting increased budget allocation among infrastructure investors
- Despite the risks, 79% rate the sector as an attractive investment opportunity over the next five to ten year
London, 26 March 2026 –
Nearly two-thirds (65%) of investors have had a Digital & Telecoms infrastructure deal fall through in the past three years[1] as a result of cyber security risk, according to S-RM’s latest Investor Sentiment Report: Forces of Change – the highest reported cause of deal failure in the sector, ahead of regulatory instability (41%) and geopolitical risks (37%).
The report, which surveyed 150 global investors across infrastructure sub-sectors, revealed that cyber security risk is not only the leading cause of deal failure but also the biggest factor shaping investment decisions in the Digital & Telecoms sector. More than three-quarters (76%) of respondents cited cyber risk as influencing deal-making decisions, ahead of sustainability risks (75%) and regulatory instability (72%).
Top cyber security concerns affecting Digital & Telecoms deals
Digital & Telecoms infrastructure stands out as uniquely exposed to cyber threats due to its critical role in supporting data, connectivity and digital services. Investors identified several cyber-related issues that have most impacted transaction activity:
| Cyber security risk factor | Total |
| Exposure to ransomware and cyber extortion | 58% |
| Weaknesses in operational technology and network security | 52% |
| Third-party and supply chain cyber vulnerabilities | 47% |
| Data protection and privacy risks | 44% |
| Legacy systems and outdated infrastructure | 39% |
Balancing risk and opportunity
Despite these risks, investor appetite for Digital & Telecoms infrastructure remains robust. Nearly four in five investors (79%) rate the sector as an attractive investment opportunity over the next five to ten years, making it the most attractive infrastructure segment ahead of Energy & Environment (75%), Social (71%), and Transport & Logistics (67%).
Investors also expect cyber risks to intensify. Over the next three years, 55% anticipate cyber security risks will increase, while 31% expect them to remain at current levels, indicating sustained pressure on deal execution and asset resilience.
Encouragingly, investors are responding by directing more resources toward resilience. Cyber security ranks as the top non-financial risk area attracting increased budget allocation, signalling that investors are actively strengthening cyber capabilities across assets and portfolios to protect value and maintain deal certainty.
Ian Massey, Head of Corporate Intelligence, EMEA at S-RM, said:
Investors in Digital & Telecoms infrastructure are navigating a market where cyber risk has become a defining factor in deal success. As assets become more connected and operational technology more exposed, cyber resilience is increasingly determining whether transactions proceed, alongside broader geopolitical and regulatory pressures. ”
Encouragingly, investors have recognised cyber security as the primary threat to value and are allocating greater resources to managing and mitigating these risks. With threats expected to intensify over the coming years, those who embed cyber resilience early in the investment lifecycle will be best placed to protect value and capitalise on continued demand for digital infrastructure.”
The full report, 2025 Investor Sentiment Report | Forces of Change: How deal teams can thrive in an age of instability, is available to download here: https://www.s-rminform.com/investor-sentiment-report-2025
About S-RM
S-RM is a global corporate intelligence and cyber security consultancy. Founded in 2005, they have 400+ experts and advisors across nine international offices, and advise companies ranging from blue-chip corporates to large financial institutions, and beyond.
Methodology
In August 2025, S-RM conducted a global survey of 150 investors across emerging and developed markets in the infrastructure sector, including its four strategically important sub-sectors: transport and logistics, energy and environment, digital and telecoms, and social infrastructure.
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