Society's Progression and the Need for Infrastructure Development
In the next 15 years, the world needs more than $100 trillion in infrastructure investment to lay the foundations of the 21st century. This investment will be spread across seven verticals: transport and logistics, energy and power, digital foundations, social infrastructure (education, healthcare, housing), water and waste, agriculture, and defense.
China, Africa, and Europe are among the regions that will see infrastructure investments exceeding 100 trillion US dollars in the next 15 years. China, with its ongoing economic challenges and structural weaknesses, is focusing on modernizing its infrastructure, particularly in areas like renewable energy and digital networks. Africa, becoming a key trade partner amid global shifts, is investing heavily to expand its renewable energy infrastructure and foster innovation. Europe, aiming to close its innovation gap, is also investing heavily to modernize its infrastructure and defense, with a focus on strengthening coastal protection.
In the United States, failing to modernize infrastructure could cost the economy $10 trillion in lost GDP by 2039, according to the American Society of Engineers. This underscores the importance of infrastructure investment, not just for economic growth, but for long-term economic competitiveness. Those that fall short in infrastructure investment may struggle to compete.
Infrastructure is no longer just about physical assets like roads and bridges. It is being redefined to encompass digital networks, renewable energy, and social systems that enable modern economies. Infrastructure is increasingly 'smart', with sensors, automation, and connectivity enabling predictive maintenance, dynamic tolling, and traffic management. An example of modern infrastructure is artificial intelligence, which requires vast data centers, electricity, cooling water, and fiber connectivity.
Assets under management in dedicated infrastructure funds have tripled since 2016 to $1.5 trillion in 2024. Savvy investors are moving beyond sector silos to capture thematic opportunities such as AI and shifting trade flows. Integrated planning is crucial for infrastructure investment, as bottlenecks in one area can hold back progress in others. Effective policymakers will attract private capital, streamline regulation, and repurpose underused assets.
AI-enabled predictive maintenance is reducing downtime by up to 75 percent and cutting maintenance costs by up to 30 percent. Skilled operators will harness technology to improve efficiency and resilience. Many assets in modern infrastructure generate valuable data and are integrated within broader ecosystems of energy, logistics, and commerce. Global demand for data center capacity could more than triple by 2030.
Money alone will not be enough for successful infrastructure investment. Governments, investors, and operators must align on a broader, more modern definition of infrastructure. Countries and companies that mobilize wisely in infrastructure investment will secure lasting advantages in connectivity, resilience, and growth. The next 15 years will define the infrastructure foundations of the 21st century.
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