The infrastructure moment

A confluence of global forces is accelerating the need for infrastructure investment. Outdated assets, rapid urbanization, geopolitical shifts, and technological advancements are exposing the limitations of yesterday’s infrastructure.

These forces are also changing the very definition of infrastructure. Traditionally, the term has been synonymous with assets such as power grids, roads, ports, and bridges. More recently, advances in technology have meant that newer assets such as fiber-optic networks, hyperscale data centers, and electric-vehicle charging stations are increasingly vital. These modern types of infrastructure share traits with “traditional” infrastructure, including long lifespans, significant initial investment, predictable and resilient cash flows, and critical economic roles.

McKinsey estimates that a cumulative $106 trillion in investment will be necessary through 2040 to meet the need for new and updated infrastructure. The required investment spans seven critical infrastructure verticals, with transport and logistics requiring the largest share ($36 trillion), followed by energy and power ($23 trillion), digital ($19 trillion), social ($16 trillion), waste and water infrastructure ($6 trillion), agriculture ($5 trillion), and defense ($2 trillion).

A supporting layer of specialized services—maintenance, inspection, compliance, and remote monitoring—ensures these assets remain operational and are increasingly considered to be infrastructure as well. Governments and investors must fund these supporting services alongside critical assets.

At the same time, the boundaries between infrastructure verticals are blurring. Many of today’s most critical needs—such as infrastructure to support the deployment of artificial intelligence and the energy transition—exist at the intersections of the verticals. This report explores these intersections in depth and reveals why a siloed approach to infrastructure planning and investment may no longer be viable. Governments, investors, and operators will want to reflect on these interconnections and pursue integrated strategies that best deliver the mix of infrastructure that society needs to prosper.

Private capital is playing an increasingly important role in delivering infrastructure that sits at these intersections and within verticals. Private infrastructure assets under management surged from about $500 billion in 2016 to $1.5 trillion in 2024, reflecting its new position as the most desired asset class for increased investment. Investments will focus within and at the intersection of seven critical verticals, which this report explores in depth: energy, power, and resources; transportation and logistics; agriculture; digital and communications; waste and water; social; and defense.

To mobilize capital at the required scale, stakeholders can adopt clear, practical, and novel strategies. Policymakers can consider meeting the moment and strategically prioritizing verticals by creating frameworks to attract private capital, streamlining regulatory processes and repurposing underused assets. Investors can broaden their scope by embracing cross-vertical plays and thematic investment opportunities while considering new financing structures that align with long-term asset performance. Finally, infrastructure operators should strive for efficiency gains and improved asset resilience by integrating technology solutions.

The next decade will be a defining one for global infrastructure. Those who act decisively today will shape the future of connectivity, economic growth, and societal well-being for generations to come.

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