Global capital flowing into new and upgraded infrastructure is expected to top US$9 trillion (C$12 trillion) in 2026, up nearly 8 per cent from 2025 as governments and investors push to modernize assets and meet climate targets. A fresh assessment by McKinsey projects a cumulative US$106 trillion (C$144 trillion) of spending will be required through 2040, with the annual run-rate accelerating over the next two years as delayed pandemic projects restart and energy transition deadlines tighten.
McKinsey adds that private infrastructure assets under management have tripled since 2016, giving institutional investors unprecedented influence over project selection and delivery. At the same time, public balance sheets remain stretched, making blended finance and user-pay models increasingly common. The result is a more competitive global pipeline and higher scrutiny on project governance.
Spending is also broadening beyond traditional roads and bridges to cover digital networks, storage, and climate-resilient systems. Cross-vertical projects that combine energy, transport, and data now attract three-quarters of private capital, according to the same research, reflecting a shift toward integrated solutions such as electric-vehicle corridors and AI-ready data centres. Construction supply chains remain under strain, though, with skilled labour shortages and materials volatility adding cost pressure in every region.
Asia anchors majority of spend
Transport will remain the single largest sector in 2026, drawing roughly US$36 trillion (C$49 trillion) over the long term for ports, rail, and airports. Energy follows with US$23 trillion (C$31 trillion) as grids upgrade for renewables and electrification. Digital infrastructure is the fastest-growing slice, needing US$19 trillion (C$26 trillion) for fibre, data centres, and satellite backbones that underpin artificial intelligence and cloud services.
Social infrastructure, waste and water, agriculture, and defence round out the seven-sector mix, yet each now embeds a technology component that blurs procurement lines. The pivot to modular builds and advanced analytics is trimming project lifecycles but raising upfront design costs. Investors say predictable regulatory frameworks and clear carbon metrics are now decisive factors when allocating capital.
Asia is set to capture close to two-thirds of all global outlays between 2026 and 2040, led by China, India, and the ASEAN economies. The World Bank estimates Indian cities alone must invest US$2.4 trillion (C$3.3 trillion) by 2050 to withstand extreme weather. “Cities need to become more resilient if people living in those cities are going to be safe,” Auguste Tano Kouame told reporters at the July 2025 launch of the Bank’s urban climate study.
In the Americas, big ticket energy and semiconductor supply-chain projects dominate, while Europe is funnelling recovery funds into rail electrification and heat-pump rollouts. Africa’s headline totals remain modest but growth rates exceed 10 per cent a year, driven by power-access programmes and port upgrades.
Digital and energy see momentum
The convergence of clean-energy mandates and data proliferation is steering 2026 budgets toward battery storage, green hydrogen, edge computing, and submarine cables. Developers report that artificial-intelligence workloads are quadrupling data-centre power density, forcing utilities to re-route capacity and accelerate substation builds.
Meanwhile, rising electric-vehicle adoption is spurring roadside charging networks that bundle grid, solar, and payment technologies into single concessions. Strong demand is also emerging for climate-proofing existing assets, particularly flood-control retrofits for coastal highways and metro tunnels. Project sponsors note that climate adaptation upgrades can unlock fresh revenue streams, such as resilience bonds, while extending asset life.
Financing models are evolving alongside technical scope. Canadian survey data show nine in 10 executives support declaring an energy-agnostic utility corridor a national emergency to speed regulatory reviews.
“We’re seeing unprecedented pressure on our infrastructure and construction industries to deliver projects quickly and urgently,” Zach Parston said in a June 2025 KPMG release, adding that collaboration across public and private actors will be critical as megaproject volumes swell. The same survey found strong appetite for public-private partnerships to share risk and attract pension capital, mirroring trends in Australia and the United Kingdom.
Looking ahead, 2026 is shaping up as a pivot year in which shovel-ready schemes meet deeper pools of long-term capital. Delivery risks remain, especially around supply chains and permitting, yet the consensus is that infrastructure will sit at the heart of economic strategy for at least the next decade. Success will hinge on integrating technology, climate resilience, and sound governance into every project from the outset.