‘Infrastructure to 2050’: Australia’s opportunity to become a regional digital hub
Monday, 27 July 2026
Australia is set to invest more than $6.2 trillion in infrastructure by 2050, creating one of the largest investment opportunities in the world and positioning the nation to become a trusted digital hub, according to new analysis by PwC.
The Global Infrastructure Outlook 2025-50, developed with Oxford Economics, found Australia’s annual spend will grow 37 per cent from $208.3 billion in 2024 to $286 billion by 2050.
Based on this forecast, Australia would become the sixth largest market globally and the fourth largest in the booming Asia-Pacific region, which will account for 52% of global infrastructure investment to 2050. Growth will be fuelled by a more digitally connected population, increased mobility, and industrial transformation.
Building for the age of AI
Digital infrastructure is expected to attract around $449 billion in investment over the next 25 years, bolstered by demand for AI computing, cloud services, sovereign data storage, and fibre networks. By 2050, an estimated $4.5 billion will be spent each year on data centres.
As Australia navigates the AI transition, electrification, data, and automation will provide the connectivity and capability that allows widespread adoption of AI, as well as stronger sovereignty and domestic investment.
According to the outlook, Australia has a significant opportunity to establish itself as a trusted digital infrastructure hub for the Asia-Pacific region, supported by its political stability, strong cyber and data governance, renewable energy sources, and strategic access to local growth markets.
But in a highly competitive investment landscape, PwC Global Infrastructure Leader, Clara Cutajar, said capital will only flow to the countries that can offer speed, security, and certainty.
“Building trusted digital foundations now will put Australia on the map as a leading destination for innovation and power the next wave of productivity. Investors want to be confident that the conditions to support long-term success are already in place. This means shoring up energy supply, streamlining planning approvals, and strengthening cyber protections.”
"We're seeing early evidence that organisations with underlying AI capabilities are better positioned to capture the full benefits of the technology. The next step is to create the infrastructure that allows those gains to be realised, at scale, across the broader economy."
Advances in AI will also influence the design and operation of important social, transport and defence infrastructure, including smart ports, virtual care, and cyber defences.
A critical moment for resources
Resources and energy infrastructure will remain a backbone of the Australian economy, with cumulative investment forecast to reach approximately $1.8 trillion by 2050.
PwC’s report points to continued strength in large bulk commodity projects alongside emerging opportunities in metals and critical minerals, which are expected to attract $58 billion in infrastructure activity by 2050.
Australia's power mix will continue to evolve over the coming decades, but ongoing demand for resources, coupled with domestic supply constraints and geopolitical tensions, will drive investment in the sector.
Infrastructure spending linked to oil and gas is predicted to increase to $24.8 billion, while coal is forecast to decline from $11 billion to $3.3 billion. But the pace of change remains unclear due to shifting market expectations, decarbonisation policies, and trading partner dynamics.
Ms Cutajar said Australia doesn’t need to choose between its export strengths and emerging industries and can build the infrastructure that allows both to thrive.
"The transition underway across Australia's is one of evolution rather than replacement. We must leverage the scale and expertise of our resources sector to support the rising need for critical minerals."
"Creating strategic project clusters around existing ports, rail, and road networks will make new infrastructure more commercially viable.”
From individual to integrated infrastructure
The research suggests the next five to ten years will be a defining period, as international competition for capital, labour, materials, and supply-chain capacity intensifies.
Ms Cutajar said the real advantage will come from integrated infrastructure rather than individual projects.
“Success isn’t guaranteed by the size of the pipeline or the dollar amount spent. It will depend on evolving from a project-by-project mindset and delivering complex assets that can connect and support a productive, resilient, and lower-emissions economy.”
“As AI places new demands on our infrastructure systems, the focus must be on coordinated investment that unlocks innovation and growth at scale. If we get that right, infrastructure can become a powerful driver of long-term national prosperity."
Read the full report, "Infrastructure to 2050: The platform for accelerating Australia’s next era of growth", here.
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