Infrastructure Development Plans

Infrastructure is the backbone of the economy—moving people, power, data, and goods—yet decades of underinvestment have created a global funding gap. As populations urbanize and digital services surge, existing roads, grids, and networks are straining under demand.

Analysts estimate that meeting global infrastructure needs will require about $106 trillion in investment between now and 2040, spanning transport, energy, water, and digital systems. This scale of spending is comparable to reshaping much of the world’s built environment in a single generation.

For policymakers, well‑designed development plans are a lever to boost productivity, cut emissions, and create high‑quality jobs, especially in construction, clean tech, and advanced manufacturing.

Two megatrends dominate current infrastructure planning: **decarbonization** and **digitalization**. To meet Paris Agreement goals, annual energy‑transition investment must reach around $5 trillion a year through 2050—about triple today’s levels.

Governments and investors are prioritizing renewables, grid upgrades, electric‑vehicle charging, and low‑carbon transport corridors. These projects are embedded in national plans such as green industrial strategies and clean power roadmaps.

At the same time, AI and cloud computing are driving an explosion in data centers, which are extremely power‑hungry. Global power demand from data centers is expected to more than double by 2030, forcing massive investment in generation capacity and grid connections.

Emerging and developing markets are growing roughly twice as fast as advanced economies, creating intense demand for new roads, housing, water, and energy systems. Much of the forecast global investment is expected to originate from and be deployed in these regions, particularly into transport infrastructure.

In contrast, many advanced economies face the problem of **aging infrastructure**: old bridges, congested rail, outdated utilities, and legacy grids. Their development plans focus on modernization—high‑speed rail, fiber networks, resilient water systems, and smart grids—to stay competitive and meet climate targets.

Europe, in particular, is channeling significant funds into green and digital infrastructure, backed by strong political support and public‑private partnerships. North America shows robust investor interest as well, especially in energy and transportation assets.

Despite clear needs, traditional public budgets cannot fully cover the required investment, leading to financing gaps and slower project pipelines in recent years. Private capital—through infrastructure funds, pension plans, and sovereign investors—is increasingly stepping in.

Dealmakers are favoring greenfield projects in renewables, digital infrastructure, and hybrid assets that blend real estate, logistics, and energy. Public‑private partnerships (PPPs) are a common model, sharing risk between governments and investors while accelerating delivery.

Investor surveys show broad expectations for moderate growth in infrastructure deals in 2025, with particular optimism in North America and Europe and in sectors like transportation and energy.

Climate change, extreme weather, and geopolitical shocks have pushed **resilience** to the center of infrastructure planning. The GIR 2025 report highlights how failures in infrastructure services can cause steep economic losses, especially in vulnerable regions.

Modern development plans increasingly integrate resilience features—elevated transport lines, flood‑resistant power stations, redundant fiber routes, and nature‑based solutions such as mangrove restoration or green roofs.

This shift means infrastructure is no longer judged only on upfront cost, but on lifecycle performance: the ability to withstand, adapt, and quickly recover from disruptions while supporting inclusive and sustainable growth.