SWITZERLAND Trends and Developments Contributed by: Nicolas Wehrli and Melanie Wilhelm, Loyens & Loeff
Digital infrastructure and smart grids Switzerland is rapidly advancing the digital transfor- mation of its energy sector. Investments in smart grids, energy management systems, and data centres are fundamentally reshaping how energy is produced, dis- tributed, and consumed. These technologies not only enhance efficiency and grid resilience but also enable greater integration of renewable energy sources. As a result, M&A activity in digital infrastructure is accelerating, driven by growing demand for cloud services, secure data storage, and advanced energy management solutions. Switzerland’s stable regula- tory environment and robust data privacy laws further strengthen its position as an attractive hub for data centre investments, encouraging both domestic and international investors to pursue new opportunities in the sector. Electric mobility and infrastructure investments The electrification of transport is accelerating M&A activity in the EV infrastructure sector. Companies are acquiring charging networks and smart mobility solutions to meet rapidly rising demand, while pub- lic–private partnerships and government incentives are further fuelling this growth. Strategic investment is increasingly focused on smart charging technolo- gies that integrate with the grid and renewable energy sources, supporting the transition to a more sustain- able transport system. As the energy and transport sectors continue to converge, M&A activity in EV infra- structure is expected to intensify, creating new oppor- tunities for both established players and new entrants. Key challenges in Swiss energy and infrastructure M&A Regulatory and policy uncertainty Switzerland’s regulatory environment is generally business-friendly; however, evolving energy policies and ongoing legislative developments are introducing new uncertainties for M&A transactions. The gradual phase-out of nuclear energy – currently under recon- sideration – raises long-term questions about how Switzerland will meet its energy needs during peri- ods of low renewable generation. Additionally, Swit- zerland’s non-EU status requires ongoing alignment with EU energy standards to maintain access to the European energy market. Changes in EU regulations
or shifts in Swiss–EU relations, such as the pending ratification of the EU Electricity Agreement, could sig- nificantly impact cross-border M&A activity and inves- tor confidence. Supply chain and material costs Global supply chain disruptions and rising mate- rial costs – exacerbated by geopolitical tensions and recent US tariffs – continue to affect infrastructure projects in Switzerland. Prices for key inputs such as steel, copper, and aluminium remain volatile, which impacts the cost structure and profitability of renew- able energy and infrastructure developments. These pressures can complicate deal valuations and reduce project margins. Furthermore, a persistent shortage of skilled labour in the construction and energy sec- tors is slowing project execution and the integration of acquired assets, potentially dampening M&A momen- tum. High valuations and competition for sustainable assets The global shift toward clean energy and sustainable infrastructure has intensified competition for high- quality assets. Swiss companies now face strong competition from international investors, including private equity and institutional funds, all seeking exposure to renewable energy and digital infrastruc- ture. This heightened demand is driving up valuations, making it more challenging to secure attractive acqui- sition opportunities. ESG-driven investment strate- gies are further amplifying competition, as investors increasingly prioritise assets that align with sustain- ability goals and offer long-term, stable returns. Regulatory and other developments 2050 Energy Strategy Following the 2011 Fukushima disaster, Switzerland committed to phasing out nuclear energy. This, com- bined with global energy shifts and Switzerland’s 2015 Paris Agreement pledge to halve greenhouse gas emissions by 2030, prompted a comprehensive overhaul of the national energy system. The Federal Council’s 2050 Energy Strategy sets out the following objectives: • promote renewable energy in Switzerland;
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