New PwC report warns investment alone won't close the gap without rethinking how projects are funded and built
Canada ranks fourth in the world for annual infrastructure spending, but a sweeping new analysis by PwC Canada concludes the country is falling meaningfully short of where it needs to be and that the scale of what's required will demand far more than simply writing bigger cheques.
The report, built on a new Oxford Economics forecast, projects cumulative infrastructure spending of US$4.7 trillion between 2024 and 2050. But measured as a share of economic output, Canada currently commits just 6.6% of GDP to infrastructure, well behind the 7.4% invested by high-performing peer nations.
Canada’s annual spending on infrastructure is set to grow 45% from $145 billion today to $210 billion by 2050, but closing the divide with peers would require an additional $34 billion annually by 2050.
"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 $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.
The report's central argument is that building roads, power grids, digital networks, and community facilities as disconnected projects is structurally inadequate.
Integrated, multi-use systems not only generate broader economic returns but attract more diverse capital because risk and cost are distributed across multiple users rather than concentrated in a single budget.
Resources infrastructure will absorb the largest share of spending through 2050 at $1.6 trillion cumulatively. Transportation follows at $912 billion, with airport spending alone projected to reach US$90 billion.
Power infrastructure is forecast at $605 billion, with renewables leading at $272 billion and nuclear contributing a further $86 billion. Defence is the fastest-growing sector at 389%, driven by NATO commitments and Arctic security demands.
Digital infrastructure
On digital infrastructure, Canada's natural advantages of land, fresh water, renewable power, and a cooling-cost-friendly climate, have not translated into competitive data centre investment, with cumulative spend projected to trail the UK and Australia by 24% and 28% respectively.
The report identifies workforce constraints as one of the biggest practical delivery risks, noting that Canada does not currently train enough tradespeople to meet existing demand, let alone what lies ahead.
"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," said Nochane Rousseau, national managing partner of clients and markets at PwC Canada.
