Canada must rethink how it plans, funds and delivers infrastructure projects if it hopes to capture a projected US$4.7 trillion opportunity and close a growing investment gap, according to a new report from PwC Canada.
The report, Mobilizing Canada’s US$4.7T infrastructure opportunity, finds the country will need an additional US$34 billion in annual infrastructure spending by 2050 to match the level of investment seen in higher-performing peer countries, even as total cumulative spending is forecast to reach US$4.7 trillion between 2024 and 2050.
While Canada currently ranks fourth globally in annual infrastructure spending at US$145 billion, that represents 6.6 per cent of GDP — below the 7.4 per cent invested by its peers. The report argues that increasing spending alone will not be sufficient to close the gap or fully realize the economic potential tied to infrastructure development.
Instead, it points to the need for a broader shift in how projects are conceived and executed, moving away from treating sectors such as transportation, energy, digital networks and community infrastructure as separate undertakings.
“Canada’s energy strategy, its defence commitments, its critical minerals potential, and its digital ambitions are being treated as separate conversations. They’re not. They’re one infrastructure challenge. Canada can exceed its US$4.7 trillion forecast or fall short of it. The difference will come down to the decisions being made now on how we plan, fund, and deliver together,” said Johanne Mullen, partner and national leader of real assets at PwC Canada.
Johanne Mullen
The report, based on a forecast by Oxford Economics, identifies three areas where changes could help Canada better position itself to capture the projected infrastructure value.
First, it calls for a shift from isolated assets to integrated systems. Projects designed for multiple uses can spread cost and risk across users while delivering broader economic value, making them more attractive to investors at a time when public finances are under pressure.
Second, the report highlights the need to move beyond traditional funding models. With fiscal constraints limiting government spending capacity, it points to the growing importance of private capital, including blended public-private investment structures. It also identifies opportunities for Indigenous communities to participate as long-term economic partners through revenue sharing, procurement and equity ownership, supported by programs such as the Indigenous Loan Guarantee Program.
Third, the report raises concerns about labour capacity, noting that Canada does not produce enough skilled tradespeople to meet current demand. It points to international approaches, including Germany’s dual-track programs and Singapore’s technical institutes, as examples of how workforce readiness could be improved.
The analysis also breaks down projected infrastructure spending across key sectors.
The resources sector is expected to account for the largest share, with US$1.6 trillion in cumulative investment tied to infrastructure supporting the extraction, processing and transportation of oil, gas, coal, metals and minerals. Growth in the sector is being shaped by multi-use projects and global demand, as well as Canada’s position as a stable supplier.
Transportation is projected to be the second-largest sector at US$912 billion, with spending expected to grow 48 per cent. While roads and bridges continue to dominate, the report notes increasing investment in passenger rail and freight corridors aimed at connecting resource regions to global markets.
Power infrastructure is forecast to reach US$605 billion, with 57 per cent growth driven largely by renewable energy projects valued at US$272 billion and nuclear investments of US$86 billion. The report notes that grid connections between provinces and territories remain fragmented and that Canada’s nuclear investment growth trails that of the United States.
Defence infrastructure is identified as the fastest-growing segment, with projected growth of 389 per cent, tied to NATO commitments, Arctic security and an additional 1.5 per cent of GDP pledged for defence and security spending.
Digital infrastructure is expected to total US$237 billion. Despite advantages such as access to land, water, renewable energy and a cold climate favourable to data centres, Canada is projected to lag behind the United Kingdom and Australia in cumulative data centre investment.
Nochane Rousseau
The report suggests that how these sectors intersect will play a key role in determining whether Canada captures the full value of the projected investment.
“We’ve been tracking how value is moving across traditional sector boundaries, and infrastructure is where that shift becomes physical. The rails, grid connections, and digital infrastructure Canada builds over the next 25 years will either accelerate that transformation or hold it back. Mobilizing Canada’s US$4.7T infrastructure opportunity is more than an infrastructure report, it’s a reinvention roadmap for how Canada builds its economic future,” said Nochane Rousseau, national managing partner, clients and markets at PwC Canada.
The findings point to a need for coordinated decision-making across sectors and levels of government, as well as increased collaboration with private and Indigenous partners, to ensure infrastructure investments deliver long-term economic returns.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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