Canada is on the brink of a monumental infrastructure transformation. Between 2026 and 2050, the country will require US$4.7 trillion in cumulative infrastructure investments, according to a joint forecast by PwC Canada and Oxford Economics. This massive investment plan is driven by the global demand for critical mineralsrising military security requirementsand the need to modernize aging infrastructure.
The forecast, shared on June 10indicates that annual Canadian infrastructure spending will rise by 45 percentfrom US$145 billion to US$210 billion by mid-century. This significant increase will place Canada fifth in the global infrastructure market, highlighting its growing importance in the international arena.
Resource infrastructure: the backbone of Canada’s investment plan
The largest share of Canada’s infrastructure investments will flow to the resources sectorreaching US$63 billion annually by 2050. This sector includes networks for the extraction and transport of metals, minerals, oil, and gas. While oil and gas assets continue to command over 72 percent of this allocation, expenditures for metals and minerals are projected to steadily expand, with 26.22 percent of the budget (US$16.6 billion) dedicated to this area.
Canada and Australia are the only advanced peer economies projected to increase their annual resource infrastructure spending between 2026 and 2050. In contrast, the United StatesUnited Kingdomand Germany are expected to see their annual resource infrastructure spending decline over the same period. This heavy resource concentration exposes a lack of diversification in other high-growth sectors, such as nuclear power and data center investment.
Defense infrastructure: a rapidly growing segment
While resources command the largest share, defense infrastructure is Canada’s fastest-growing segment. Defense infrastructure outlays are projected to jump 389 percent between 2026 and 2050, primarily driven by NATO spending commitments and heightened Arctic sovereignty concerns. This expansion aligns with Canada’s pledge to allocate an additional 1.5 percent of gross domestic product (GDP) to critical security assets.
However, the report warns that public balance sheets are insufficient to fund this US$4.7 trillion pipeline. To meet the forecast spending, private institutional capital and blended public/private financing structures should be deemed essential. Currently, Canada allocates 6.6 percent of its GDP to infrastructure, trailing high-performing peer nations that average 7.4 percent. Closing this gap to protect long-term economic competitiveness will require an additional US$34 billion in annual expenditures through 2050.
Addressing regulatory bottlenecks
In response to the gaps in capital allocation, Canadian policy is shifting to address regulatory bottlenecks. The federal government has proposed a one-year review target for major developments, while provinces like Alberta have introduced legislation such as Bill 30 to impose a 120-day approval window for industrial and mining applications. These measures aim to accelerate several proposed projects and push Canadian resources infrastructure spending beyond the baseline forecast.
As Canada embarks on this ambitious infrastructure journey, the coordination between governments, investors, engineers, and operators will be crucial. The strategic deployment of this capital can enhance trade competitiveness, strengthen energy independence, and secure Canada’s economic sovereignty. The ripple effects extend further—job creation, productivity gains, and a stronger foundation for Canada’s economic future.
