Global Infrastructure Boom: Mega-Projects and Strategic Growth

McKinsey’s report The Infrastructure Moment concludes that the world has entered a historic inflection point where the very definition of infrastructure is expanding—from traditional assets like roads, ports, and grids to include digital networks, AI-driven systems, renewable energy, and supporting services. Meeting global infrastructure needs will require $106 trillion in cumulative investment by 2040, and this cannot be achieved through siloed, sector-by-sector approaches. Instead, infrastructure must be planned and financed as an interconnected ecosystem, with cross-vertical strategies becoming essential.

Infrastructure is at the heart of Europe’s economic transformation. Richard Marshall, Head of Infrastructure Research at DWS Group, explores how subsectors like data centres, renewable fuels, transport, and power grids are becoming increasingly attractive for investors, and what it will take for Europe to compete with the U.S. in mobilising private capital. Europe is sending the right signals to investors, with ambitious energy security and decarbonisation policies, a focus on digitalisation, and commitments to strategic autonomy. But can it truly rival the U.S. as an investment destination?  Richard Marshall believes so. “Europe is a big ship to turn, but it is turning,” he says. The U.S. has succeeded in mobilising capital faster in recent years through tax credits, but Europe offers regulatory stability across political cycles, broader sector diversity, and lower entry valuations than North America. “The key for Europe to transform quicker is to activate private capital with simplified bureaucracy, clear long-term support for key sectors and to efficiently support public-private finance partnerships to de-risk and scale up breakthrough technologies.” https://lnkd.in/dqYXgt6m

:this: "Infrastructure has always been the backbone of economic growth and social progress. Roads, bridges, power grids, and water systems fueled industrialization and lifted living standards. Today, however, infrastructure is being redefined. It now encompasses not only concrete and steel but also digital networks, renewable energy, and social systems that enable modern economies...Infrastructure is not only about capital deployment but also about how effectively governments, investors, and operators coordinate. The most effective policymakers will attract private capital, streamline regulation, and repurpose underused assets." https://lnkd.in/ek5BFEsP

This week brought milestones in infrastructure, bold policy signals, and renewed attention on access. It’s clear: the path ahead is complex, but the momentum is building. Here are five shifts shaping the conversation this week: 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 & 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐌𝐨𝐯𝐞𝐬 𝐍𝐢𝐠𝐞𝐫𝐢𝐚 𝐜𝐨𝐦𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐬 𝐟𝐮𝐥𝐥𝐲-𝐨𝐰𝐧𝐞𝐝 𝐟𝐥𝐨𝐚𝐭𝐢𝐧𝐠 𝐯𝐞𝐬𝐬𝐞𝐥 𝐭𝐨 𝐛𝐨𝐨𝐬𝐭 𝐨𝐢𝐥 𝐞𝐱𝐩𝐨𝐫𝐭𝐬  The country debuted the FSO Cawthorne, a 2.2-million-barrel floating storage & offloading vessel off Bonny, jointly developed by NNPC (55%), Sahara Group, Eroton, & Bilton. It aims to cut reliance on pipelines, reduce shipment delays, and help achieve OML-18’s 2025 production targets. 𝐏𝐨𝐥𝐢𝐜𝐲 & 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧 𝐑𝐄𝐀 𝐚𝐢𝐦𝐬 𝐭𝐨 𝐜𝐨𝐧𝐧𝐞𝐜𝐭 17.5 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐍𝐢𝐠𝐞𝐫𝐢𝐚𝐧𝐬 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐦𝐢𝐧𝐢-𝐠𝐫𝐢𝐝𝐬 & 𝐬𝐨𝐥𝐚𝐫 The Rural Electrification Agency (REA) revealed plans this week to scale up mini-grids and solar systems to bring electricity access to 17.5 million underserved citizens, particularly in rural and remote communities. 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐒𝐩𝐨𝐭𝐥𝐢𝐠𝐡𝐭 𝐀𝐟𝐃𝐁 𝐭𝐨 𝐥𝐞𝐧𝐝 $500𝐌 𝐭𝐨𝐰𝐚𝐫𝐝 𝐍𝐢𝐠𝐞𝐫𝐢𝐚’𝐬 𝐟𝐢𝐬𝐜𝐚𝐥 & 𝐩𝐨𝐰𝐞𝐫 𝐫𝐞𝐟𝐨𝐫𝐦𝐬 The Rural Electrification Agency (REA) revealed plans this week to scale up mini-grids and solar systems to bring electricity access to 17.5 million underserved citizens, particularly in rural and remote communities. 𝐆𝐥𝐨𝐛𝐚𝐥 𝐈𝐧𝐬𝐢𝐠𝐡𝐭 – 𝐋𝐨𝐜𝐚𝐥 𝐑𝐞𝐥𝐞𝐯𝐚𝐧𝐜𝐞 𝐍𝐢𝐠𝐞𝐫𝐢𝐚’𝐬 𝐞𝐧𝐞𝐫𝐠𝐲 𝐬𝐡𝐢𝐟𝐭 𝐠𝐚𝐢𝐧𝐬 𝐦𝐨𝐦𝐞𝐧𝐭𝐮𝐦 𝐚𝐬 𝐠𝐥𝐨𝐛𝐚𝐥 𝐩𝐚𝐫𝐭𝐧𝐞𝐫𝐬 𝐛𝐚𝐜𝐤 𝐃𝐀𝐑𝐄𝐒 𝐫𝐨𝐥𝐥𝐨𝐮𝐭  The DARES program is gaining global traction, with support from the IFC, Rockefeller Foundation, and GEAPP. The initiative aims to expand clean energy access across underserved communities through blended finance and local partnerships, a strong sign that Nigeria’s renewable ambitions remain a global priority. 𝐂𝐨𝐧𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐒𝐩𝐨𝐭𝐥𝐢𝐠𝐡𝐭 𝐅𝐨𝐫𝐮𝐦 “𝐔𝐧𝐢𝐧𝐭𝐞𝐫𝐫𝐮𝐩𝐭𝐞𝐝 𝐏𝐨𝐰𝐞𝐫: 𝐓𝐡𝐞 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐚𝐥 𝐈𝐦𝐩𝐞𝐫𝐚𝐭𝐢𝐯𝐞” 𝐢𝐬𝐬𝐮𝐞𝐬 𝐜𝐚𝐥𝐥 𝐟𝐨𝐫 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭   At the Expert Forum convened by NESG, the Minister of Power emphasized the urgent need for strategic investment in infrastructure to guarantee stable electricity for industries and households. Discussions focused on closing transmission gaps and ensuring consistent power output. 𝐄𝐧𝐞𝐫𝐠𝐲 𝐐𝐮𝐨𝐭𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐖𝐞𝐞𝐤 “Growth forges in discomfort; when systems are challenged, that’s where innovation shows up.” Oyindamola Sofoluwe This week’s theme: infrastructure breakthroughs, scalable access, reform-funded stability, and solar kindled independence. Your turn 👉🏽 Which update resonated most; the FSO vessel, REA’s access goal, the AfDB loan, solar resilience, or the investment call in industry? Drop your thoughts below. #EnergyUpdate #NigeriaEnergy #PowerSector #Renewables #Solar #Investment #EnergyTransition

Infrastructure is no longer just concrete and steel. It’s the nervous system of modern economies. McKinsey & Company projects $106 trillion of investment will be required by 2040 to renew and expand global infrastructure: • $36 T transport & logistics • $23 T energy & power • $19 T digital & communications • $16 T social (health, education, housing) • $6 T waste & water • $5 T agriculture • $2 T defense But this transformation isn’t just about money. The very definition of infrastructure is shifting. Traditional assets roads, power grids, bridges are now joined by digital networks, data centers, EV charging stations and the maintenance, inspection, and compliance services that make them functional over time. The World Bank underscores this urgency. Its flagship Infrastructure for Development (Infra4Dev) and Quality Infrastructure Investment (QII) principles estimate that low- and middle-income countries need about 4.5 % of GDP every year through 2030 to close infrastructure gaps roughly $1.5 trillion annually. They stress that every dollar spent must be climate-resilient, socially inclusive & transparently governed. The New Infrastructure Equation 1️⃣ Physical + Digital Integration •Infrastructure now includes fiber-optic backbones, hyperscale data centers, EV corridors, AI-ready grids. •Each asset must both generate and consume data to stay investable and resilient. 2️⃣ Mandatory Data as a Design Feature •Standards like ISSB, EU CSRD, and the World Bank’s Country Climate and Development Reports (CCDRs) push climate & social metrics into the core of project finance. •Continuous monitoring, digital twins & auditable ESG disclosures are becoming preconditions for concessional and private capital. 3️⃣ Private Capital as System Architect •Private infrastructure AUM has already tripled from $500 B in 2016 to $1.5 T in 2024. •Investors require decision-grade, comparable data to back long-lived assets that straddle multiple sectors. Policy and Governance: From Optional to Mandatory - Governments can unlock trillions by Embedding World Bank QII principles and mandatory ESG disclosure (ISSB, GRI, CSRD) directly into tenders and PPPs. - Requiring open data standards so projects remain transparent and bankable across decades. - Incentivizing cross-vertical investments (e.g., energy + digital + transport) that match how economies really function. Why It Matters Infrastructure is becoming a living, data-rich organism. Its success will hinge on credible, verifiable data flows from carbon emissions and biodiversity impacts to financial resilience that satisfy regulators, citizens and investors alike. The next decade will decide whether the world meets the $106 trillion infrastructure need with sustainable, transparent, and future-proof systems, or repeats the short-term builds of the past. Those who design infrastructure as both a physical network and a verifiable data asset will define the next era of global growth.

I came across this insightful McKinsey piece, “The Infrastructure Moment,” which captures how the Global Infra sector is undergoing a fundamental transformation. I think it is a must read for those of us working in infrastructure, urban planning, smart cities, energy transition, or digital infrastructure.

Building the Future: The GCC’s $3 Trillion Infrastructure Boom From world-class ports to renewable energy and smart mobility, Gulf nations are investing boldly—projecting annual infrastructure spending to rise from $264B in 2024 to $300B by 2027. The Gulf Cooperation Council (GCC) countries—Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman—are making historic infrastructure investments to diversify their economies beyond oil. Development of ports, airports, rail networks, and renewable energy systems lies at the heart of national visions such as Saudi Arabia’s Vision 2030 and the UAE’s Centennial 2071. These initiatives reflect a shared ambition to create sustainable, connected, and innovation-driven economies that can thrive in a post-oil era. Ports and Logistics The GCC’s strategic position between Asia, Africa, and Europe has fueled vast maritime investments. Dubai’s Jebel Ali Port remains one of the world’s largest, while Saudi Arabia’s King Abdullah Port and Oman’s Duqm Port are rapidly expanding into global logistics hubs. Qatar’s Hamad Port has revolutionized national trade capacity. Integrated logistics zones such as Dubai’s JAFZA and Saudi Arabia’s NEOM Logistics Park are improving efficiency through automation and digital systems. Airports and Rail Networks Air connectivity continues to expand across the region. Major airports in Dubai, Doha, and Riyadh are being upgraded to meet future tourism and cargo demand. The GCC Railway project aims to connect all six member states, strengthening trade and regional cohesion. The UAE’s Etihad Rail, already operational across key routes, is setting new benchmarks for freight efficiency and regional transport. Highways, Water, and Urban Mobility Saudi Arabia and the UAE are investing heavily in highways, smart transport systems, and urban mobility to support mega-projects like NEOM and Expo City Dubai. Complementing these efforts, the region is also advancing the construction of dams, barrages, water storage reservoirs, and agricultural irrigation systems to secure water resources, support sustainable farming, and strengthen resilience against climate challenges. Desalination, Waste, and Renewable Energy Desalination remains vital for water security, with plants increasingly powered by renewable energy. Waste recycling initiatives and large-scale solar projects, including the Mohammed bin Rashid Al Maktoum Solar Park and Saudi Arabia’s Al Shuaiba Solar Plant, are advancing green transformation across the Gulf. Outlook and Conclusion With over US$3 trillion in infrastructure projects and annual investment expected to reach US$300 billion by 2027, the GCC is laying the foundation for an interconnected, resilient, and sustainable future. These transformative initiatives reflect the region’s optimism, innovation, and unwavering commitment to building a thriving, world-leading model of growth for generations to come.

The 20th Annual UK Sustainable Infrastructure Summit, which will be held on 9 October at the Cavendish Conference Centre in London, brings together international investors, project sponsors, contractors and government officials to discuss how to ensure there is sufficient investment capital – as well as investable projects - to deliver the government’s plans.   In its recent UK Investment Landscape Report, the City of London Corporation identified a £150bn funding gap over five years, a significant proportion of which relates to infrastructure projects, including sustainable infrastructure. The report quotes a forecast from the National Infrastructure and Service Transformation Authority (NISTA), stating that there will be an annual need for £80bn of infrastructure investment in the 2030s, with the result that infrastructure investment should therefore increase by £5bn year-on-year. This totals £75bn over five years.   This year’s summit programme will provide a detailed analysis of the pipeline of sustainable infrastructure projects in the government’s Infrastructure Pipeline that was published just before the summer, the new institutional arrangements that are intended to help deliver these projects and the various opportunities and challenges that are associated with them.   The confirmed speakers to date include: 🎤 Ian Brown, Interim CEO, National Wealth Fund 🎤 Dr Janet Young CBE, Director General, Institution of Civil Engineers (ICE) 🎤 James Heath, Partner, Flint Global, and Former Chief Executive, National Infrastructure Commission 🎤 Dr Darryl Murphy, Managing Director and Head of Infrastructure Debt, Private Markets, Aviva Investors 🎤 Ceri Evans, Global Director of Cost and Commercial Management, Consultancy, Mace 🎤 Tracy Blackwell CBE, CEO, Pension Insurance Corporation 🎤 Sophie Fry, Head of Sustainability Policy Development, Barclays 🎤 Matthew Daffurn, Partner, BCLP 🎤 Adam Ezzamel, Head of Offshore Development E&W, RWE 🎤 Tristan Zipfel, Director of Strategy, Markets and Investments, EDF Renewables UK 🎤 Julia Pyke FEI, HonFNucl, Joint Managing Director, Sizewell C 🎤 Anurag Gupta, Chief Risk Officer, SIMCo (Sequoia Investment Management Company) 🎤 Ross MacKenzie, Managing Director, Natural Resources and Nuclear, Kier Group 🎤 Clare Jackson, CEO, Hydrogen UK 🎤 Alejandro López Delgado, Managing Director, La Caisse (Caisse de dépôt et placement du Québec) 🎤 Tom Williams, Head of Energy and Infrastructure, Downing 🎤 Alberto Abascal, Managing Director, Project Finance, Corporates & Institutions, NatWest Learn more: https://lnkd.in/e5e3Nn_u ✨ Sponsored by BCLP and Downing✨ 💥 Media partner: City AM, supported by Chartered Institution of Civil Engineering Surveyors (CICES), Global Infrastructure Investor Association (GIIA) and IPFA💥 #UKInfra #Sustainability #Infrastructure

CORTMA emphasises the interconnectedness of various infrastructure systems. Infrastructure has evolved beyond traditional constructs such as bridges and roads; it now encompasses a wide array of components, including digital networks, clean energy systems, and electric vehicle charging corridors. Accelerated population growth, technological advancements, and climate-related challenges are reshaping societal perspectives on the systems that underpin their operations. McKinsey & Company Explainers provides an in-depth examination of this subject. https://lnkd.in/dPT82Ff5 https://lnkd.in/dFXvidG3 CORTMA, Mactur,

NEW APPOINTMENT: Last Mile, leading UK multi-utility infrastructure group, has confirmed the appointment of Richard Thomas as its new Chief Executive Officer, replacing Michael Pearce steps down after a nine successful years at the helm. Richard joins from Ipsum, where he served as CEO from 2020 to 2024, and brings a strong track record of acquisition, integration and growth. During his time at Ipsum, he oversaw nine acquisitions and guided the business through an exit from Aliter Capital to IK Partners. Last Mile describes itself as one of the UK’s leading providers of last-mile utility infrastructure, designing, building, owning and managing networks for electricity, gas, water, wastewater, and heat, and working closely with housebuilders, developers and utility clients across the country. With more than 800 employees, and having delivered over 910,000 connections (with 730,000 more in pipeline), Last Mile’s ambition is to play a leading role in building the infrastructure backbone for sustainable development across the UK. Under Richard’s leadership, the group aims to move beyond utility deployment and deepen its role in long-term operation, low-carbon systems, and integrated infrastructure design and management. Richard Thomas, Jordan McCulla, Helena Slater, Jo Samuel, Gina Cowen, Kirsty Nellany, Michael Blake, Craig Boath, Lynne Hainey Read more about this positive appointment here https://themepsource.com/