A new report from PwC Canada finds that Canada is under-investing in its infrastructure compared to its peers, and that catching up could cost an extra US$34 billion annually by 2050.

Although Canada ranks fourth in the world with an annual infrastructure spend of US$145 billion, it invests just 6.6% of GDP on infrastructure. That figure is below the 7.4% its high-performing peers invest.

Closing the gap is only part of the challenge, the report goes on to say.

The authors suggest that the moist effective solution to resolving the problem will depend not just on how much it invests, but on how those investments come together. Specifically, they recommend that Canada sees community infrastructure projects not as separate ventures, but as connected systems.

"Canada's energy strategy, its defence commitments, its critical minerals potential, and its digital ambitions are being treated as separate conversations. They're not," said Johanne Mullen, Partner, National Leader of Real Assets at PwC Canada. “They're one infrastructure challenge. Canada can exceed its US$4.7 trillion forecasted infrastructure spend by 2050 or fall short of it. The difference will come down to the decisions being made now on how we plan, fund, and deliver together.”

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

• 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.
• 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.
• 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.

The report also estimates the value of infrastructure spending across the country.

• 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%.

"We've been tracking how value is moving across traditional sector boundaries, and infrastructure is where that shift becomes physical," said Nochane Rousseau, National Managing Partner, Clients and Markets at PwC Canada. “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.”

• Economic
• Government
• Projects