Canada’s US$34 billion infrastructure gap: why spending alone won’t be enough

PwC Canada’s latest report, Mobilizing Canada’s US$4.7T opportunity, finds the country must rethink how projects are planned, funded, and delivered to mobilize a US$4.7 trillion opportunity.

Key findings:

• Forecasted cumulative infrastructure spend in Canada from 2024–2050: US$4.7 trillion*
• Additional annual investment needed by 2050 to match high-performing peers: US$34 billion
• Defence infrastructure projected to grow 389%** making it Canada’s fastest-growing sector

Toronto, ON, June 10, 2026 – A new report from PwC Canada finds that despite ranking fourth globally in annual infrastructure spending at US$145 billion, Canada invests just 6.6% of GDP on infrastructure, well below the 7.4% its high-performing peers invest. Closing that gap requires an additional US$34 billion a year by 2050.

But closing the gap is only part of the challenge. The report, Mobilizing Canada’s US$4.7T infrastructure opportunity, built on a new Oxford Economics forecast, highlights that how effectively Canada captures this opportunity will depend not just on how much it invests, but on how those investments come together. According to the report, realizing that opportunity requires a shift from silos to systems, moving from planning roads, power grids, digital networks, and community infrastructure as separate projects to building them as connected systems.

Sector convergence: the opportunity gap

The report identifies three interdependent shifts Canada can make to capture this opportunity:

1. From isolated assets to integrated systems: Multi-use infrastructure delivers broader economic value and attracts more diverse capital because cost and risk are shared across multiple users. This makes projects more investable at a time when public budgets alone cannot close the gap.
2. From traditional funding to shared capital structures: Canada’s fiscal position is constrained, making private capital essential. The report outlines approaches including blended public-private investment, and Indigenous communities participating as long-term economic partners through revenue sharing, expanded procurement, and equity ownership, supported by programs such as the Indigenous Loan Guarantee Program. These approaches are emerging but not yet the norm.
3. From legacy delivery to workforce readiness: Canada doesn’t produce enough tradespeople to meet current demand, let alone what’s ahead. The report highlights approaches such as Germany’s dual-track programs pairing professional degrees with trade certifications and Singapore’s dedicated technical institutes.

Capturing the infrastructure value:

• Resources (US$1.6T cumulative): Canada’s largest sector, encompassing infrastructure that supports the extraction, processing, and transportation of oil, gas, coal, metals and minerals. Growth is increasingly shaped by multi-use projects, driven by rising global demand, geopolitical shifts, and Canada’s position as a stable, reliable supplier.
• Transportation (US$912B): The second-largest sector, projected to grow 48%. While spending on roads and bridges dominates, significant investment is flowing into passenger rail expansion and freight corridors connecting commodity sources to global markets.
• Power (US$605B): Projected to grow 57%. Renewables lead at US$272 billion, with nuclear adding US$86 billion. Grid connections between provinces and territories remain fragmented, and Canada’s nuclear investment growth (11%) trails the US (17%).
• Defence (389% growth): Canada’s fastest-growing sector, driven by NATO commitments, Arctic security, and the country’s pledge of an additional 1.5% of GDP for defence and security investments.
• Digital (US$237B): Canada has natural advantages for data centres (land, water, renewable power, cold climate) yet is projected to trail the UK and Australia in cumulative data centre investment by 24–28%.

Interested in learning more?

Join PwC Canada experts on June 17^th at 11am ET, for a live webinar exploring the findings.
Register for webinar here.

Research methodology:

Oxford Economics created a new database of infrastructure spending forecasts to anchor PwC’s research. The forecasts are based on Oxford Economics’ proprietary models for the construction industry and cover nine sectors in 45 countries and territories. The infrastructure spending forecasts are globally consistent and are linked through global and country-level assumptions of trade volume and prices, competitiveness, capital flows, interest and exchange rates, and commodity prices.

For a particular country and sector, the infrastructure spending forecast is informed by end-use demand factors such as population growth, income growth, cost of capital, and economic activity across sectors. Given the changing composition of economies over time, the infrastructure spending forecast will diverge from country-level GDP.

For a full overview of methodology, please see the report, viewable here.

*All figures in 2023 US dollars unless otherwise stated.

**Between 2024-2050