Canada is facing an infrastructure investment opportunity worth an estimated US$4.7 trillion through 2050, but simply increasing spending will not be enough to strengthen the country’s economy and competitiveness, according to a new report from PwC Canada.
The report, Mobilizing Canada’s US$4.7T Infrastructure Opportunity, argues that Canada needs to rethink how major infrastructure projects are planned, financed and delivered if it wants to maximise the economic value of the investment expected over the next 25 years.
Drawing on a new infrastructure spending database developed by Oxford Economics, the report identifies an opportunity for Canada to strengthen its economic position. However, PwC says achieving that potential will require the country to move away from traditional project-by-project planning and instead treat infrastructure as a connected system.
Canada is expected to require US$4.7 trillion in infrastructure investment by 2050. The country currently ranks fourth globally in annual infrastructure spending, at approximately US$145 billion, but invests around 6.6% of GDP in infrastructure. That compares with 7.4% among higher-performing peer countries.
Closing that gap would require an additional US$34 billion in annual investment by 2050.
PwC argues, however, that the central issue is not simply finding more money.
Johanne Mullen, Partner and National Leader of Real Assets at PwC Canada, said Canada’s energy strategy, defence requirements, critical minerals ambitions and digital development should not be treated as separate infrastructure discussions.
Instead, she said, they represent one interconnected infrastructure challenge, with the decisions made today determining whether Canada reaches or falls short of its US$4.7 trillion potential.
Infrastructure as an integrated network
PwC’s proposed approach would see infrastructure designed to serve several economic and social purposes at the same time.
For example, roads serving remote mining areas could also provide access to defence facilities and regional transportation networks. Rail corridors could incorporate electricity transmission infrastructure, while digital connectivity could be integrated across different layers of the economy.
According to PwC, such an interconnected model could improve trade competitiveness, strengthen energy independence and contribute to Canada’s economic sovereignty.
It could also support housing development, climate adaptation, productivity improvements and job creation while helping attract additional investment.
Nochane Rousseau, National Managing Partner for Clients and Markets at PwC Canada, described the report as a broader roadmap for Canada’s economic development rather than simply an assessment of infrastructure needs.
She said the rail networks, electricity connections and digital infrastructure built over the next quarter century could either accelerate Canada’s transformation or constrain it.
Rethinking infrastructure financing
PwC identifies three major changes that Canada needs to make to capture the opportunity.
The first is a shift away from viewing infrastructure as a collection of independent projects. Instead, planners should consider how individual assets can support multiple sectors, users and economic objectives.
A single transportation corridor, for example, could carry telecommunications infrastructure and electricity transmission while supporting industrial development, housing and community services.
PwC says this approach could also make projects more attractive to investors because costs and risks can be distributed across several stakeholders while the economic benefits are shared more widely.
The second change concerns financing.
With governments facing fiscal pressures, PwC expects private capital to become increasingly important in delivering the infrastructure Canada will require.
The report supports shared capital structures that combine public and private investment. It also highlights the potential role of Indigenous communities as long-term economic partners through revenue sharing, procurement agreements and equity participation.
Indigenous loan guarantee programmes could help facilitate greater participation by enabling communities to invest in infrastructure projects and share in their long-term economic returns.
Because many infrastructure projects will serve multiple users, PwC argues that financing arrangements should reflect those shared benefits, with industries, governments, communities and households contributing to costs and risks where appropriate.
Addressing the skills shortage
The third major challenge is workforce capacity.
Canada is already facing shortages across skilled trades, and PwC expects the problem to become more significant as infrastructure investment accelerates.
The report warns that the country is not currently producing enough skilled workers to meet existing demand, let alone the requirements generated by US$4.7 trillion of future investment.
PwC points to international examples that Canada could adapt, including Germany’s dual-track education model, which combines professional education with trade qualifications, and Singapore’s specialised technical training institutes.
Alongside increased domestic training, the report says Canada will likely need targeted immigration and workforce development measures to ensure infrastructure projects can be completed on schedule and within budget.
Investment concentrated across key sectors
The scale of the projected investment is particularly significant across several infrastructure categories.
Resources infrastructure supporting oil, gas, mining and critical minerals development is expected to attract approximately US$1.6 trillion through 2050.
Transportation infrastructure is projected to account for another US$912 billion, while power infrastructure is expected to attract US$605 billion.
Digital infrastructure is projected to receive approximately US$237 billion.
For PwC, the figures demonstrate the scale of Canada’s infrastructure opportunity but also the need for a fundamentally different approach to delivery.
The challenge will not simply be mobilising US$4.7 trillion in capital. Canada will also need to connect projects, financing, workforce development and national economic priorities so that individual infrastructure investments generate wider and longer-term value.
