Investing in infrastructure, the platform for accelerating human progress

What might the world’s infrastructure look like in 2050, after US$151.1 trillion in new investment? Better. Smarter. More comprehensive. Responsive and predictive. Wired and wireless. Clean and resilient amid disruptions. Connected and robust. Reliant on powerful hardware and the most advanced software. Modernised—not only newly built but renewed. Infrastructure is much more than steel, concrete, and capital. It’s the platform for economic prosperity and human thriving.

By 2050, the world will be increasingly dependent on electrification, data, automation, and circular resource flows. And infrastructure will no longer be defined solely by isolated physical assets like roads, grids, or plants. It will span the digital, environmental, industrial, and social systems that underpin productivity and human well-being. Importantly, these systems will all be interconnected—and they will rely on one another for smooth functioning.

New energy and digital assets will scale rapidly, accelerating the application of AI computing hubs and high‑density data centres, carbon capture networks, and microgrids that give users real‑time control over reliability and cost. Roads will carry autonomous vehicles and embed abilities like dynamic pricing and wireless charging. Airports will function as predictive, intermodal hubs that manage vast fleets of drones and autonomous, electrified aircraft. Businesses will run automated, just‑in‑time supply networks powered by clean energy and secure computing. Systems will anticipate needs, allocate resources dynamically, and optimise performance—delivering structural productivity gains across every sector. The impact on communities will be significant, giving people more time to do the things they love.

That may sound like a lot to expect from the global network of roads, power plants, ports, buildings, and data centres. After all, parts of this network are ageing and in obvious need of repairs and modernisation. But the world requires nothing less from its built environment. Big changes are afoot in the coming 25 years. A projected 1.8 billion more people will live in cities by 2050—mostly in the Asia-Pacific region and Africa—and the number of megacities worldwide will nearly double. Climate impacts will test resilience and expose vulnerabilities in transport, energy, and urban systems. The rise of AI, cloud computing, and data-driven services will fundamentally reshape infrastructure needs. And as this Outlook is being written, recent developments in the Middle East are reinforcing how quickly geopolitical shocks can reshape infrastructure priorities. Disruptions to energy flows, shipping routes, and critical industrial inputs highlight the importance of resilience, redundancy, and security alongside efficiency, affordability, and decarbonisation.

To understand the scale of the opportunities ahead in infrastructure, PwC commissioned Oxford Economics to produce a new forecast model. Drawing on the last 20 years of spending data, our Global Infrastructure Outlook 2025–50 uses macro modelling engines, calibrated to today’s geopolitical and economic realities. The Outlook covers nine sectors and 20 subsectors in 45 countries and territories, recognising the evolution of infrastructure over the past decade—think power storage and data centres—and the heightened importance of sectors such as defence infrastructure and the transmission and distribution infrastructure needed to support the AI revolution.

The result? The most comprehensive, market‑ready global infrastructure forecast available, designed to help investors, policymakers, and industry leaders identify and seize opportunities sooner and with far greater precision.

In the period covered by our Outlook, in real terms, global annual spending is forecast to rise from $4.4 trillion in 2024 to $6.9 trillion in 2050—representing a cumulative total of $151.1 trillion over 25 years.
 

PwC’s Global Infrastructure Outlook 2025–50 explores the infrastructure the world will need, the new forms already emerging, the changing ways people and businesses will use these systems, and, more importantly for the present study, the financing and commercial models required to deliver them at scale. We highlight the global trends influencing the expansion of infrastructure spending, size the immense opportunities on offer, and identify the regions and sectors that present the greatest growth, in both absolute and relative terms.

To be part of the movement that enables infrastructure, leaders will have to convert vision into value through actionable plans. They will have to act boldly to re-prioritise resources and show clarity and decisiveness, having the nerve to embrace non-traditional models.

The opportunity is real and measurable. The time to unlock it is now.
 

PwC’s Global Infrastructure Outlook forecasts annual investment in nine sectors through 2050. In each category of infrastructure, underlying economic trends, the application of new technologies, and developments in key subsectors influence the rate of growth.

Though PwC’s Global Infrastructure Outlook points to a 54% rise in annual infrastructure spending between 2024 and 2050, the overall figure masks wide regional variations. Population growth drives the need for infrastructure spending. Each region of the world faces a distinct mix of demographic trends, natural resource availability, fiscal constraints, policy priorities, and risk exposures—factors that will shape the scale, timing, and composition of investment flows. Understanding these asymmetries is essential for investors and corporate firms allocating capital and capabilities across geographies, and for governments competing for private capital.
 

Asia-Pacific: Building out and up

The Asia-Pacific region remains the engine of global infrastructure growth, accounting for over 52.4% of total investment through the forecast period. Regional infrastructure spending will rise from $2.3 trillion in 2024 to $3.6 trillion by 2050—an increase of around 54%. Annual spending on transport, which accounts for 40.8% of total investment, will grow by 86% between 2024 and 2050, led by major expansions in roads, rail, and airports. Power sector investment will increase by around 51% over the period, with especially rapid growth in transmission and distribution (197%) and utility-scale storage (300%). Meanwhile, the rapid build‑out of digital infrastructure continues. Digital investment climbs by roughly 21% from 2024 to 2050, as data centres, fibre, and 5G networks expand across the region.

Advanced economies in the region, including Australia, Japan, New Zealand, and the Republic of Korea, are increasingly focused on the renewal of ageing assets, the expansion of digital and defence infrastructure, and the resilience of core networks. The Chinese Mainland will likewise pursue upgrades to its existing infrastructure and telecommunications networks. It will also focus on building out non-fossil energy systems, as well as energy transmission and storage facilities. In contrast, emerging economies—including India (3.8% CAGR to 2050), Indonesia (3.6% CAGR), the Philippines (3.2% CAGR), and Vietnam (4.3% CAGR)—will deliver some of the strongest growth in infrastructure investment, propelled by relatively young populations, rapid urbanisation, and policy aimed at closing infrastructure coverage gaps and boosting industrial capacity. (For a more detailed explanation of mature and emerging economies in Asia-Pacific, see the methodology section.)

Americas: US dominance and Latin American gaps

The five countries from the Americas covered in this report—Brazil, Canada, Chile, Mexico, and the US—collectively account for 95% of the region’s economic output, and together they’ll lift total infrastructure investment from around $1.2 trillion in 2024 to nearly $1.9 trillion by 2050, a 57% increase. Annual spending growth over the forecast 25 years will remain dominated by the US. Power and transport will lead spending across the region, each accounting for around 21.6% of total investment. As in the Asia-Pacific region, the expansion in data centres and fibre and 5G networks will result in investments in power and digital infrastructure that will become more closely linked. In transport, Brazil, Chile, and Mexico will prioritise connectivity and logistics; the US and Canada will focus on maintenance and modernisation of legacy assets.

Infrastructure needs and the level of development vary sharply across the region. In Latin America, gaps in basic infrastructure provision are most apparent in the levels of access and efficiency: the United Nations found that, in Brazil, only about 55% of the population has access to a safely managed sanitation system; and only one-sixth of roads across Latin America are regularly passable. In contrast, the US and Canada face challenges in infrastructure renewal and upgrading. Utilities across both countries record more than 260,000 water main breaks annually, costing around $2.6 billion in repairs. Although these needs are real, most of the attention will be focused on power generation to support the growth of digital infrastructure and, in particular, data centres.

Europe: Navigating the renewal super‑cycle

Europe is entering a renewal-led super-cycle, with annual infrastructure spending projected to grow by 42% between 2024 and 2050 (from $641 billion to $909 billion). Funding will be directed towards reinvestment in ageing transport infrastructure (bridges, tunnels, rail), which accounts for about 30% of total spending. Defence infrastructure for logistics and for housing, training, and supporting personnel are also gaining greater prominence as Europe responds to new security realities. And given that the proportion of the 65-and-older population is set to reach 27% by 2050, spending on social infrastructure will rise from $145 billion in 2024 to $205 billion in 2050, making it the second-largest sector.

Western and Northern Europe leads in infrastructure spending, with Germany, the UK, and France investing most, especially in transport, power, and digital sectors. Norway will shift oil and gas infrastructure spending towards renewables and grid upgrades. Central and Eastern Europe shows the fastest relative growth, driven by transport and logistics, while Southern Europe is mixed: Türkiye’s rapid growth will be underpinned by urbanisation and transport; Spain and Italy will prioritise social infrastructure and power.

The Middle East: Economic diversification and digital transformation

The Gulf Cooperation Council (GCC) countries of the Middle East are delivering some of the world’s most ambitious multi-decade infrastructure build-outs. The region’s infrastructure spending, slated to grow 75% between 2024 and 2050 (from $200 billion to $349 billion annually), will be led by Saudi Arabia and the UAE, which together are projected to account for around 78% of the total. Across the GCC, economies are diversifying away from a historical dependence on oil and instead are pushing investment into model cities, industrial clusters, and digital and clean energy assets.

Recent developments in the region have also sharpened the strategic rationale for investment in infrastructure. Disruption to energy exports, shipping routes, and critical industrial inputs has highlighted the importance of resilient logistics, domestic industrial capability, and energy security. As a result, the region’s infrastructure story is no longer driven solely by growth and diversification—it’s also driven by resilience.

By 2050, transport will represent about one-quarter of total regional infrastructure spending, surpassing oil and gas. Power infrastructure—particularly renewables and batteries—will accelerate from a small base, with annual investment in renewables rising fivefold by 2050. Water infrastructure (including desalination and reuse) will double as the region addresses resource constraints, including water scarcity. Digital infrastructure, such as fibre networks and data centres, will become even more vital to economic transformation, alongside targeted spending in industrial and logistics assets.

Africa: Unmatched demand driven by demographic change

Africa’s fundamental development story means it will experience the fastest annual growth in infrastructure spending of any region over the 25-year forecast period. Aggregate annual spending across Ghana, Kenya, Nigeria, and South Africa is projected to increase from $54 billion in 2024 to $96 billion in 2050, a 77% gain.

Demographic change and urbanisation are the driving forces of growth in Africa. The continent is expected to add more than 800 million urban residents by 2050, and the number of megacities will triple. Spending on transport infrastructure, the largest sector, is projected to more than double as trade corridors expand. Agriculture and resources infrastructure will be the region’s second- and third-largest sectors in terms of spending over the forecast period.

We expect the next 25 years to be defined by an unprecedented surge in global infrastructure investment. But there’s no guarantee the required levels of spending will materialise. And top-line revenues don’t automatically translate into profitable investments. To unlock value, investors, governments, and corporations will need a strategic, system‑wide approach that overcomes today’s constraints and accelerates delivery.

Key imperatives of such an approach include:

Embedding long-term strategic planning. Political and policy uncertainty and regulatory and planning delays hinder the development of infrastructure and reduce its attractiveness as an investment. At the same time, infrastructure assets are inherently long-lived, often spanning multiple economic and political cycles. To maximise their value, robust frameworks that enable decision-making beyond short-term horizons are needed. This means establishing stable regulatory environments and clear national or regional strategies that provide certainty for investors and delivery partners. Governments should form independent bodies empowered to make infrastructure investment decisions across political parties. In parallel, planning and regulatory approval processes must be streamlined to accelerate delivery and reduce uncertainty.

Moving from silos to integrated systems. Concentrating investment in power or digital sectors without making corresponding upgrades in other sectors like transport or water risks creating bottlenecks that may ultimately constrain both returns and growth. Conversely, spreading and coordinating investment across the infrastructure ecosystem unlocks multiplier effects—while also enabling the alignment of capital, capability, and policy to deliver integrated systems that boost productivity and long-term value. Consider: combining data centre campuses with clean power purchase agreements and water reuse. Developing electric vehicle corridors alongside grid upgrades, battery storage, and depot charging. Linking port automation with rail and logistics hubs. Examples of successful coordination abound.

Innovating financing and partnership mechanisms. Because public budgets alone will be insufficient institutional investors, sovereign wealth funds, pension funds, and private credit providers will be central to the next 25 years of infrastructure development. What’s needed is more effective and efficient collaboration between governments and the private sector. This includes developing new financing structures, risk-sharing mechanisms, and delivery models that leverage the strengths of both sides. One example is capital recycling, wherein governments sell or lease mature infrastructure assets and reinvest the proceeds into new projects—unlocking funding without increasing public debt. A priority will be rapid bankability of new technologies, including green hydrogen, geothermal technology, virtual power plants, behind-the-meter platforms, advanced storage, and data centre energy solutions. This will require standardised performance data, common risk taxonomies, stronger public-sector risk-mitigation tools, and new insurance products that de‑risk technologies in the early stages. Blended finance will also need to evolve. Instead of bespoke, deal‑by‑deal structures, the market will shift towards standardised, scalable platforms: template risk allocation models, platform‑level vehicles that pool assets, modular instruments, and digital marketplaces that match de‑risked projects to capital, particularly in emerging markets.

Redefining planning and construction. By 2050, industries will deliver infrastructure through integrated, cross‑sector platforms. Energy, transport, digital, water, and industrial systems will be co‑designed, co‑located, and co‑optimised. They’ll be supported by modular construction and automated project controls that compress delivery times and improve accuracy. End‑to‑end building information modelling (BIM), digital twins, and integrated data environments will be universal. Generative AI and agentic AI will transform delivery by predicting long‑term risks at the concept stage, auto‑generating and stress‑testing design and sequencing options, orchestrating complex interfaces, and recommending real‑time mitigation—thus reducing overruns, accelerating delivery, and saving billions across capital programmes. In parallel, circular construction practices—large‑scale reuse and recycling, low‑carbon materials, off‑site manufacturing, and low‑impact site practices—will materially reduce the cost and carbon footprint of major projects.

Adopting new commercial models. Outcome‑based contracting—focused on emissions, resilience, reliability, and user experience—will become the default. Infrastructure as a Service subscription models will expand across energy, digital, mobility, heat, and resilience assets, with data‑driven value streams increasingly complementing traditional tariffs. As systems become more integrated, multi‑party platform models will replace linear supply chains. These platforms—sharing risk, data, and value across operators, technology providers, investors, and the public sector—will enable faster deployment of infrastructure at lower cost.

Engaging communities early and consistently. Community opposition can delay or derail projects. Involving communities from the outset and maintaining an ongoing dialogue helps explain why both public and private investment is needed, and how these projects will deliver real benefits to people—such as more jobs, improved access to places of employment, and better connectivity to essential services. And because the high cost of capital and access to financing is a challenge, communities also need to be engaged on the topic of who pays for infrastructure. Leaders must reframe costs and investments that can generate both a financial and a social return in the form of improved quality of life or expanded services.