Delivering future-ready infrastructure on time and on budget

Governments are increasingly embracing new technologies and processes to optimize every stage of infrastructure development

Kelly Marchese

United States

Infrastructure underpins everything. The bridges, roads, rail transit, subways, cables, transformers, sewers, and water treatment plants that governments have installed over the decades—and constantly work to maintain and upgrade—are what make modern life possible.

Large public works projects have had world-changing impacts, from the Panama Canal’s rerouting of global maritime supply chains1 and the US interstate highway system’s changing an entire national culture,2 to the England–France Channel Tunnel enhancing regional connectivity.3 Countless smaller projects, of course, are in progress in every state, county, city, and town around the world, helping businesses operate, commuters get to work, and households function.

However, too many projects exceed their budgets, fall behind schedule, or both. In fact, research suggests there are multiple factors that lead to cost and time overruns in infrastructure projects, including inadequate scoping and planning, labor shortages, technology changes, funding and budget shortfalls, and lack of coordination among different stakeholders.4

Finding the money to get things built is one thing. But keeping everything operating is a perpetual challenge—and it’s getting harder. In planning projects for the years to come, governments face new environmental threats that make future-proofing critical infrastructure an immediate priority. According to a 2023 report from the Coalition for Disaster Resilient Infrastructure, the global average annual loss of infrastructure due to changing weather patterns is between US$732 billion and US$845 billion.5 Extreme weather events are threatening bridges, dams, power plants, and other historically safe structures, even as acute heat adds stresses no builder anticipated.6

There are also growing demands on existing infrastructure, which often needs upgrades today to manage future growth. For instance, analysts expect the growing ubiquity of artificial intelligence and generative AI to drive exponential growth in data centers over the next decade, which will, in turn, strain the grid and power infrastructure.7 While hyperscalers will likely build out much of their power infrastructure, grid modernization must match this growth.8 Governments need to support these modernization efforts and adopt agile regulatory approaches while exploring an ever-broader range of energy sources, such as nuclear small modular reactors.9

This trend focuses on how governments are addressing these new and perennial challenges in delivering infrastructure fit for future purposes. Doing better means not only taking threats into account but also changing processes to accelerate traditional timelines. Too often, infrastructure projects are overtaken by technological advances, shifting demand forecasts, and even new construction methods.10 Forward-thinking leaders are looking to new technologies, processes, governance, and funding mechanisms to ensure that essential and critical infrastructure is not only delivered on schedule and within budget but also capable of responding to the intricate and ever-evolving demands of society and the environment.

Key challenges

  • Weather and other man-made threats like cyber-attacks on infrastructure: Risks and threats to infrastructure are increasing in severity and unpredictability, requiring heightened security measures, physical bolstering, and more redundancy planning, which all exacerbate budgetary challenges.
  • Cost and time overruns: Infrastructure projects often face cost and time overruns due to engineering complexity, changes in political leadership, divergent stakeholder interests, budget constraints, evolving technology, talent gaps, and supply chain issues.
  • Funding and financing gap: Global investment in infrastructure is far below needed levels, with a US$15 trillion funding gap projected through the 2030s despite annual investments exceeding US$5 trillion.11
  • Aligning stakeholder interests: Misaligned stakeholder interests can cause delays, especially as the private sector often shies away from financially risky projects without clear revenue models.
  • Talent shortages: With projects increasingly drawing on technology and advanced skills along with large-scale construction work, governments and economies often face a widespread talent shortage.

Trend in action

Infrastructure projects are massive, complex undertakings designed to serve large groups of people over the long term: powering homes, transporting people and goods, supporting critical services such as health care, enabling digital communication, and more. The scale demands collaboration among government agencies, contractors, financiers, and skilled workers while tapping into global supply chains.

Speed of delivery will likely always be an issue since governments must adhere to a broad set of public commitments and proper stewardship of public money, obligations that inevitably slow decision-making and delay permitting. Additionally, divergent interests of diverse stakeholders—such as citizens, businesses, nonprofits, and other public agencies—although important, can stall projects further. Leaders must work within those parameters to get tomorrow’s infrastructure underway as efficiently as possible.

Embedding resilience in project scoping and planning stages

Of course, every infrastructure project should be planned effectively. However, the process is often challenging because of such projects’ inherent complexity, including the need for planners to forecast usage and maintenance years into the future. This complexity is further compounded by the increasing frequency and severity of extreme weather events, which place additional strain on already demanding planning processes.

To speed up the planning process, governments are increasingly using new technologies to collect and analyze large volumes of disparate data to enhance the effectiveness and efficiency of those planning processes. Additionally, they are embedding resilient design principles at the core of their planning processes, helping projects be better equipped to withstand future environmental uncertainties.

Using emerging technologies to improve planning and building resilience for changing weather patterns

Officials in Raleigh, North Carolina, are using AI-based technology to bolster the city’s water and sewer systems. Sensors detect early signs of blockages and forecast flooding and overflows during storms. Machine learning helps predict water main breaks, directing the municipal water utility on where to perform preemptive maintenance.12

Raleigh officials are also using a digital twin to guide development. Microclimate modeling is enabling them to avoid development that can create heat islands—an increasingly critical initiative as the region anticipates more frequent extreme heat events in the future. This approach addresses the challenge of extreme heat and its impact on residents and future infrastructure development. The simulation ingests developers’ new permits and building designs, allowing officials to visualize how these developments will affect shade and wind flow in the area.13

Case study: Using digital twin technology to inform regional planning efforts

In Broward County, Florida’s second-most populous county, the Broward Metropolitan Planning Organization, responsible for coordinating transportation policy for 31 municipalities and 1.9 million residents,14 is developing a digital twin platform to improve infrastructure planning decisions as congestion, economic, and flooding threats rise. The platform, SMART METRO, will integrate data from various sources—on housing, zoning, population, transportation, and more—with geospatial visualization tools, allowing planners to ask questions in natural language and tap into a single source of truth.

 

The digital twin’s data exchange will allow the organization to understand current economic, transportation, and social needs, as it prepares to plan projects. An analytics layer enables predictive capabilities to forecast congestion conditions, land use patterns, and flood projections. Additionally, a simulation layer uses models to inform transportation, land-use, and resiliency planning, map and visualize future project development, and analyze relative cost-benefit impacts from different scenarios.15

 

Broward Metropolitan Planning Organization officials are planning to use the platform for several upcoming projects, including analyzing the impacts of a redevelopment program in the City of Miramar, focused on transportation infrastructure and the need for additional investment in roadways and public transit. Analysis based on flood prediction and simulation data helps planners locate public transit stops and routes.16

 

Beyond enhanced decision-making, the platform is helping to build collaboration between municipalities that often operate independently. The digital twin facilitates better collaboration by providing a unified platform for data-sharing, communication, and scenario analysis, thereby enhancing regional planning efforts.17

 

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Adopting resilient design principles

Infrastructure is built to endure, and many of the systems we rely on daily—highways, railways, and power grids—have served us well for decades. However, the rising frequency and intensity of extreme weather events are increasingly testing these systems. From wildfires that devastate power and water infrastructure to floods that paralyze transportation networks, the resilience of infrastructure is under strain like never before.18

This isn’t due to poor design or planning. Decades ago, no one could have anticipated the scale and severity of today’s environmental challenges. Now that the risks are understood, it’s important to plan and build with the future in mind, helping to ensure that the infrastructure constructed today can withstand the next century, even as environmental conditions worsen.

Around the world, infrastructure planners are increasingly adopting design principles that enhance resilience to extreme weather. A cornerstone of extreme weather-resilient infrastructure design is accurate weather data—both current and forecasted. By utilizing precise weather forecasts, planners can assess the long-term impacts of changes in weather patterns on infrastructure, prioritize investments, and implement adaptive strategies that ensure these critical systems remain functional in the face of future challenges.

The Sydney Metro, the largest urban rail investment in Australia’s history and intended to last 100 years, integrated extreme weather resilience into its core design, prioritizing adaptation at every stage. From the outset, risks were assessed across three time horizons: short term (2030), medium term (2070), and long term (2100). Leveraging long-range climate models, Sydney Metro identified high, medium, and low risks for various parts of the system and adjusted the infrastructure design to address them.19

For example, the north-west section of the network—the first stage of the project in operation since 2019—was identified as highly vulnerable to flooding and heat waves. To mitigate these risks, critical equipment was placed in temperature-controlled rooms capable of withstanding extreme heat. Ventilation systems in tunnels and stations were specifically designed to maintain customer comfort on the hottest days. Additionally, water-sensitive urban design features, such as permeable surfaces, were incorporated to reduce flood risks during heavy rainfall.20

A key element of extreme weather-resilient design principles is the use of materials capable of withstanding the increasing frequency and intensity of extreme weather events. Governments are collaborating with universities, research institutions, and the private sector to assess how such events will impact infrastructure over its lifespan. This insight allows for the design of infrastructure that incorporates materials specifically engineered to endure and mitigate the effects of extreme weather.

For instance, transportation and infrastructure planners in Virginia are using modeling created by the Virginia Institute of Marine Science at the College of William & Mary to design more resilient infrastructure. These models, which forecast sea-level rise through 2050, enable planners to assess how extreme weather will affect infrastructure. For example, they analyze the effects of rising salinity on bridges and culverts, determine changes needed in metallurgical standards for structures, and identify suitable materials for coastal roads that are increasingly vulnerable to flooding.21

Streamlining permitting and improving transparency

Policymakers often craft laws and regulations with the best of intentions: to ensure infrastructure projects meet high standards, minimize ecological harm, protect marginalized communities, and gain the support of diverse stakeholders. However, well-meaning safeguards can create barriers to development, with projects tangled in policy webs spanning local, state, and national authorities. It’s challenging to lower barriers once raised, but some leaders are taking the initiative to streamline processes to get things done.

Making business-to-government interaction easier

For businesses, navigating government regulations and permitting processes can be challenging. With different rules and procedures and various government entities involved, project implementation can be impacted and lead to additional costs, extended timelines, and hesitancy from the private sector to partner altogether. Efforts to simplify the permitting landscape seek to minimize applicants’ challenges to obtain the full range of necessary permits.22

In our previous trends report, we highlighted how governments are increasingly embracing a “single-window” approach to licensing and permitting. In Denmark, the Danish Energy Agency now serves as a single point of contact, coordinating with relevant public authorities to provide all key wind farm licenses.23 The country can now process wind farm permits in just over 10 days, enabling businesses to install an offshore wind project in only 34 months, compared to timelines of up to eight years in other European Union nations.24

Building transparency into the permitting processes

Governments worldwide are enhancing transparency in the permitting and licensing processes. The Michigan Infrastructure Office has developed a publicly accessible dashboard that displays major state infrastructure projects selected for a coordinated permitting process. Similar to the Danish Energy Agency, the office collaborates with state departments to identify the necessary permits and determines the most efficient order to process permit applications.

Applicants can use the dashboard to track the necessary permits for a project, their current status, and an estimated timeline for completion.25 And, in the interests of transparency and accountability, the dashboard also allows the public to monitor the state’s progress in reviewing and expediting permits.26

Building consensus with diverse stakeholders

Stakeholder engagement and consensus-building are critical components of successful infrastructure projects. Engaging stakeholders allows planners to identify the specific needs, objectives, and pain points of those affected by a project—an understanding crucial for aligning project goals with community and other stakeholder expectations and requirements.

Participatory planning and engagement with communities and other stakeholders

The Economist Impact’s Infrastructure for Good barometer highlights the critical need for participatory planning and stakeholder engagement in early-stage assessments. The barometer examines the infrastructure ecosystems of 30 countries and benchmarks their capacity to deliver efficient and quality infrastructure that addresses economic, social, and environmental needs. It indicates that only half of the countries surveyed engaged in participatory planning and need assessments in the early stages of a project.27

Infrastructure Victoria in Australia is an example of participatory planning and deep engagement with communities to assess future infrastructure needs. Victoria Infrastructure Strategy, the organization's 30-year regional plan (2021 to 2051), views infrastructure development as a system rather than an amalgamation of individual projects. It projects the region’s needs over a long period, creating a blueprint for what needs to be refurbished and what needs to be built at the system level. The plan was developed by making residents and communities co-owners in planning and needs assessments and by establishing a thorough consultation and engagement process.28

Water infrastructure is another critical area that often does not receive as much attention as other infrastructure projects. Watershed management and resilient water infrastructure development affect a wide variety of stakeholders, from businesses to communities. The Chesapeake Bay Program provides a glimpse into methods that find common ground between different stakeholders and pave a way forward to solve the critical issue of watershed management. The program is a public-private partnership dedicated to protecting and restoring the Chesapeake Bay watershed, the largest estuary in the United States and the third largest in the world, spanning six states and home to more than 18 million people and 3,600 species of plants and animals.29

Founded in 1983, the program aims to align federal, state, and local goals in a collaborative water management strategy. Using written agreements that include periodically updated collective value principles, it engages federal and state agencies, local governments, nongovernmental organizations, businesses, academic institutions, and communities in a holistic approach that addresses water quality, habitat restoration, community engagement, and industry improvement around the Chesapeake Bay.30

Using new tech-driven tools to drive stakeholder engagement

Understanding the motives and aspirations of different stakeholders is crucial, as is engaging with them meaningfully. Helsinki, Finland, has been at the forefront of utilizing digital twin technology for enhanced urban management and boasts one of the world’s longest-running digital twin programs. The city is currently leveraging this technology to enhance citizen engagement and participation.31

By providing access to the city’s digital twin tool in the Kalasatama neighborhood, Helsinki offers a highly visual platform on which stakeholders, including current and prospective residents, can view project information and provide input, including via mobile devices. The initiative serves as a model for future projects throughout the city and illustrates how digital twins can help meet the growing needs of urban environments over time.32

Incentivizing private-sector participation in infrastructure

Agencies, often short on manpower and financial resources, routinely collaborate with companies to make large-scale infrastructure projects happen. However, corporate objectives may not align with national infrastructure goals, and delays or rising revenue risks can stymie large projects. To help counter this, some governments are adopting strategies to reduce financial risks for private investors, making risky or unviable infrastructure projects more appealing.

Deploying derisking strategies

Financing costs, driven by the cost of capital, represent a significant portion of the expenses involved in constructing and operating infrastructure projects, whose diverse risks can elevate the cost of capital—and the overall project cost—as investors and lenders demand higher returns to offset these uncertainties.

The risks associated with infrastructure projects can be broadly categorized into four categories: macro, market, technical, and financial.33 Governments have begun deploying a mix of derisking strategies designed to manage risks across all categories, helping reduce the cost of capital and, subsequently, the overall project expenditure. The reduced risk and lower financing costs can also enhance the projects’ initial commercial viability and sustainability.

Collaborating with multilateral agencies can help governments of developing nations derisk infrastructure investments. For instance, the World Bank’s Multilateral Investment Guarantee Agency offers political risk insurance to protect investors in infrastructure projects within developing countries from losses due to political risks, including currency inconvertibility, transfer restrictions, expropriation, war, terrorism, civil disturbances, breach of contract, and non-honoring of financial commitments.34 Similarly, the Global Infrastructure Facility, a G20 initiative, provides funding and advisory services to governments on how to select, design, structure, derisk, and bring high-quality infrastructure projects to market.35

According to a Deloitte estimate (figure 1), employing a tailored mix of derisking strategies—including favorable policies, guarantee mechanisms, offtake reliability, the development of domestic capital markets, and leveraging blended finance—could drive a US$40 trillion reduction in energy transition costs by 2050.36

Rebalancing the financial risks between the public and private sector

The high risk of delays and cost overruns in infrastructure projects can deter private developers and lenders, particularly when revenue models are unproven. To encourage private-sector involvement, many governments are adjusting how financial risks are distributed, taking on a greater share of the financing and revenue burden. The construction of highways in India serves as a powerful case (see “New revenue models to accelerate road development in India”).

Case study: New revenue models to accelerate road development in India

The National Highway Authority of India has long faced an uphill battle in attracting companies to build and operate national highways. The hesitation is understandable: Such projects come with hefty price tags, can be delayed by everything from red tape to legal entanglements with various groups, have uncertain revenue models for new routes, and historically have given investors little control over cash flow.

 

To stimulate private-sector involvement, the highway authority introduced the Hybrid Annuity Model (HAM) in 2016 to contract private developers to build highways. HAM represents a public-private partnership structure that redistributes financial risks between the government and the private sector. Under this model, the government shares the financial risk by infusing 40% of the project cost during the construction period. It also manages revenue collection, primarily through tolls, and assumes the risk of revenue shortfalls. Additionally, the government provides inflation-adjusted payments to the private sector for construction, operation, and maintenance. The approach, by having the government contribute a fixed percentage to the project costs, also disincentivizes contractors from low-balling bids to win contracts.

 

The model has been successful in catalyzing road development—delivering more than 8,000 kilometers of Indian highways since its inception—and diversifying the contractor base to include a wider range of developers. HAM’s success has prompted the government to test the model to attract private players to develop infrastructure projects in additional areas such as water and sanitation.37

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Building supporting infrastructure

Infrastructure relies on interconnected systems to function effectively. For instance, the electrification of transport requires an extensive network of charging stations, expansion in power generation, advanced battery storage systems with rising capacity, and transmission lines to connect power generation sites to the national grid. Private companies often hesitate to commit resources to projects when the necessary supporting infrastructure—critical to ensuring their success—is not yet in place.

Governments have particularly struggled to find willing private partners for renewable energy infrastructure projects. In most cases, locations with abundant energy sources, such as solar or wind, are remote and lack ready connections to existing grid infrastructure—and, therefore, may attract little commercial interest. The challenge lies in the prohibitive costs for individual developers to not only build a plant but also invest in connecting it to the grid dozens or hundreds of miles away.

Australian state governments aim to address the investment issue with renewable energy zones, which are designated semi-remote areas with abundant renewable energy resources. Each renewable energy zone clusters large-scale renewable energy projects, such as wind and solar farms, alongside dedicated storage and transmission infrastructure.38 State governments have committed to installing long-distance transmission lines to connect these zones to the existing grids.39

The concentration of multiple large-scale plants in a single location enables economies of scale, while the energy storage and transmission infrastructure curtail transmission losses and ensure integration into the national grids—an approach that can make it commercially viable for private companies to develop energy plants in remote locations. Australia has identified nearly three dozen locations across the country as possible renewable energy zone sites.40

Bridging the talent gap

The talent and skills gap in infrastructure is a challenge that can affect agencies’ ability to implement projects effectively. At the market level, workers are increasingly scarce in construction, engineering, renewable energy, and other emerging areas.41 Moreover, there is a growing talent gap within governments to drive tech-aided infrastructure development and other softer skills, such as cross-sector collaboration.42

Funding upskilling and reskilling of workers

The widening skills gap is impacting infrastructure development across regions. Infrastructure is a labor-intensive industry: Projects simply do not get built without a steady supply of skilled engineers, architects, crane operators, electricians, construction laborers, solar energy technicians, cybersecurity professionals, and many more. 

The Construction Training Fund (CTF) in Western Australia illustrates how an industry and government-funded statutory authority can drive upskilling and reskilling in the construction industry. For more than three decades, the CTF has administered a training levy on building and construction work. The state then pours the revenue back into the industry via a range of training grants and subsidies.43

The CTF coordinates with employers, government, and training providers to align training programs with industry needs. It also conducts deep research and labor market needs-demand analysis to understand the current and emerging labor market.44

The CTF drives skilling efforts through apprenticeship and traineeship grants,45 which employers can use to offset their costs up to AU$34,500 per apprentice or trainee.46 The program offers participants bonuses on completion and additional payments for each further year of training.47 For existing construction workers, it incentivizes upskilling by providing a rebate of up to 80% of the total cost of training. In the fiscal year 2023 to 2024, the CTF allocated AU$24.1 million toward apprenticeship programs and an additional AU$ 2.9 million for upskilling existing workers. Consequently, more than 16,000 workers trained with CTF support joined the infrastructure workforce. A survey of employers indicated a nearly 90% satisfaction rate with the quality of CTF training, underscoring the enhanced skill levels within the workforce.48

Closing the cybersecurity talent gap in the United States

As digital technologies play an ever-larger role in physical infrastructure, agencies expect the demand for cyber talent to increase exponentially. In 2024, the global cyber workforce gap was at 4.8 million—up 19% from 2023—with critical infrastructure and government more likely to report a cyber skills gap than other sectors.49 Indeed, the US Cybersecurity and Infrastructure Security Agency (CISA) estimates that there are more than 570,000 open cybersecurity jobs in the United States alone.50

 

With the National Cyber Workforce and Education Strategy, the federal government has aimed to strengthen cyber skills in the workforce as well as the public sector.51 To plug the cyber talent gap within the federal government specifically, CISA runs the Federal Cyber Defense Skilling Academy, helping train federal civilian employees in cyber defense skills in a three-month full-time program.52

 

The National Science Foundation funds the US$24 million CyberCorps Scholarship for Service program, designed to train the next-generation cyber workforce for the federal, state, local, and tribal governments. The program provides three years of scholarship support to cybersecurity undergraduate and graduate education, with the condition that recipients work for the government for a period equal to the length of the scholarship after graduation.53

 

Universities, both large and small, are playing their part in filling the cyber talent skills and demand gap. The National Security Agency has recognized Dakota State University as a Cyber Education Center of Excellence and routinely sends employees for specialized learning opportunities alongside the thousands of students in cyber-focused programs.54 In 2023, Dakota State entered into a partnership agreement with the agency, allowing students to earn academic credit by working on classified projects. Furthermore, National Security Agency employees can collaborate with faculty and students, providing valuable insights and keeping students informed about the latest trends in national security defense.55

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Building public sector capacity to deliver on infrastructure

The private sector is invariably involved in delivering large public infrastructure projects, often through partnerships. But, given the growing complexity of developing infrastructure, public-private partnerships increasingly require innovative structures.56

To help public officials envision and implement new structures, the World Bank created the Infrastructure Finance Academy, offering resources and tools to support infrastructure financing. The academy provides multiple online courses that deliver training in key areas, such as creating an enabling environment to attract private capital, using different financial instruments, and preparing transactions to meet market requirements.57 The program also maintains a database of 6,400 public-private infrastructure projects from 137 low- and middle-income countries, illustrating a wide range of cases for public officials and policymakers.58

Helping smaller governments to help themselves

Without support from regional governments or the right partners, smaller local governments can struggle to deliver on large infrastructure projects. In fact, the challenge often begins in applying for competitive grants available from state and national governments. Philanthropic partners and even national governments can step in to help make sense of complex grant-making processes.

For instance, proficiency in writing and applying for grants is essential for local governments, as stronger applications increase the likelihood of receiving funding. Bloomberg Philanthropies’ Bloomberg City Network helped to bridge this specific skills gap through its Local Infrastructure Hub, which supported more than 700 small- and medium-sized cities through grant application boot camps. These programs trained city officials to develop competitive grant applications and improve technical writing, enabling them to tap into funding sources.59

Tools and strategies to deliver on infrastructure

Governments worldwide are exploring, piloting, and reimagining multiple tools and strategies to tackle the infrastructure delivery challenge. Given the scale and complexity of large infrastructure projects, time and cost overruns are often inevitable. The following portfolio of tools and strategies can serve as considerations for government leaders as they look to deliver resilient infrastructure fit for future purposes.

  • Digital twins and AI-driven scoping and planning: Collect and analyze vast amounts of data, providing planners with insights, simulations, and virtual renderings for better decision-making.
  • Permitting process improvements: Deploy innovative approaches such as a “single-window” system to streamline the complex permitting landscape.
  • Systemic transparency: Incorporate transparency in infrastructure projects by developing publicly accessible dashboards that display details of infrastructure projects under review.
  • Stakeholder analytics: Analyze various stakeholders’ motives, priorities, and aspirations to help improve consensus-building on large, complex infrastructure projects.
  • Derisking strategies: Address various risks affecting an infrastructure project, with the objective of reducing financing costs.
  • Financial risk rebalancing: Distribute risk between the public and private sectors for high-risk projects, with governments assuming a larger portion of the financing and revenue burden.
  • Networked infrastructure development: Prioritize the development of interconnected networks of infrastructure that depend on one another for optimal functionality rather than concentrating solely on isolated projects without the necessary supporting infrastructure.
  • Critical skills workforce training programs: Fund and develop skills training programs that align with industry standards and requirements by partnering with the private sector and academia.
  • Public-sector workforce upskilling: Develop and deliver training programs designed to enhance the capacity of the government workforce in effectively implementing infrastructure projects.

My take

UDOT’s digital transformation efforts can help improve infrastructure project delivery

Carmen Swanwick, director of project development, Utah Department of Transportation60

 

The Utah Department of Transportation (UDOT) is undergoing a major business systems modernization effort to replace legacy, homegrown systems with more efficient, integrated technology solutions. The first phase of the systems in focus spans Capital Planning, Project Management Information Systems, Right of Way, and Contracting. Currently, UDOT relies on legacy systems that are low on functionality and efficiency, often forcing staff to work outside these systems just to complete tasks. UDOT’s goal is to transition to fully integrated best-of-breed software-as-a-service solutions—all integrated via an AI-driven enterprise data backbone that will deliver critical business insights needed to deliver the infrastructure projects that will power Utah’s future. 

 

For instance, the UDOT handles vast amounts of information, much of it unstructured and inconsistent. To ensure accuracy and reliability, UDOT is cleaning, organizing, and standardizing data across project delivery, capital planning, cash flow processes, and project management. By establishing clear guidelines for data formatting and labeling, UDOT will make information more accessible and usable for internal stakeholders and external contractors and vendors.

 

The business systems modernization effort complements UDOT’s Digital Delivery model, which is already transforming the department’s delivery of infrastructure projects. The model helps make design, construction, and asset management more efficient by delivering digital data in more consumable formats for surveys, field applications, and decision-making for downstream users. This transformation is also reshaping design, inspection, and construction workflows. Instead of relying on printed plans in the field, inspectors can now leverage advanced tools to interact directly with digital models, thus streamlining workflows and improving accuracy.

 

Historically, even projects on the same corridor required redundant surveys and utility assessments. By centralizing data and ensuring continuity, we aim to eliminate these inefficiencies, allowing future projects to build on existing models rather than starting from scratch. 

 

Additionally, the capture and integration of data from design, construction, and asset management can help the UDOT to create advanced functionalities like digital twin models to support decision-making and improve work processes across multiple disciplines. While the UDOT’s IT modernization is still in its early stages, it will require workforce upskilling and training to ensure the widespread adoption of digital tools within the department.

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By

Michael Flynn

Ireland

Kelly Marchese

United States

Gianni Ciufo

Canada

Akash Keyal

India

Endnotes

  1. Rodolfo Sabonge, “The Panama Canal expansion: A driver of change for global trade flows,” United Nations’ Economic Commission for Latin America and the Caribbean, August 2014.

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  2. Clifford M. Comeau, “Conditions and performance of the interstate system—after 40 years,” Public Roads 60, no. 1 (1996).

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  3. Public-Private Infrastructure Advisory Facility Global Infrastructure Hub, “The channel tunnel,” Nov. 30, 2020.

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  4. While there are regional differences in the reasons for delays and cost overruns, common factors include inadequate project planning, changes in project scope, lack of skilled labor, insufficient budget, and poor communication and coordination. Global research on construction projects suggests an average cost overrun of 28%; see Chinthaka Atapattu, Niluka Domingo, and Monty Sutrisna, “Causes and effects of cost overruns in construction projects,” Massey University, Jan. 5, 2023.

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  5. Coalition for Disaster Resilient Infrastructure, “Global infrastructure resilience: Capturing the resilience dividend,” October 2023.

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  6. Fatima Yousofi, “Climate change poses risks to neglected public transportation and water systems,” The Pew Charitable Trusts, Sept. 24, 2024; Meghan Bartels, “The hidden ways extreme heat disrupts infrastructure,” Scientific American, Aug. 2, 2024.

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  7. Sean Bennis, Brian Goodwin, Saurin Mehta, Andrew Moen, and Jacob Kinstler, “Exponential data center growth fuels unprecedented buyer interest and investment opportunities,” Lincoln International, August 2024.

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  8. Henry Chapman, “How utilities, hyperscalers are working to tackle ‘extreme’ data center power demands,” Data Center Knowledge, Sept. 26, 2024.

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  9. Ivan Penn and Karen Weise, “Hungry for energy, Amazon, Google and Microsoft turn to nuclear power,” The New York Times, Oct. 16, 2024.

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  10. Lena Rivera, “Over budget and past due—the problem plaguing large infrastructure projects,” GovDesignHub, March 29, 2023.

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  11. Julia Prescot, “How can we ensure that ‘money in the bank’ leads to ‘shovels in the ground?’” World Bank Blogs, May 25, 2023; Deloitte, “Delivering infrastructure for good,” accessed April 1, 2025.

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  12. Deloitte, “AI-powered cities of the future,” Feb. 25, 2025, p. 36.

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  13. SmartCitiesWorld, “Building a future-ready city: Raleigh,” Nov. 5, 2024.

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  14. Broward Metropolitan Planning Organization, “About MPO,” accessed April 1, 2025.

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  15. Broward Metropolitan Planning Organization, “Annual report 2023–2024,” July 2024.

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  16. Broward Metropolitan Planning Organization, “Smart metro: Transforming our region with AI and advanced analytics,” accessed April 2, 2025.

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  17. Broward Metropolitan Planning Organization, “Annual report 2023–2024,” July 2024.

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  18. Julie Strupp, “LA fires damage power, sewer and water infrastructure,” Construction Dive, Jan. 14, 2025; The Indian Express, “Western Railway cancels 48 trains due to flooding of tracks,” Aug. 29, 2024.

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  19. Government of New South Wales, Australia, “Sydney Metro rail system: Climate resilient transport,” accessed Jan. 28, 2025.

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  20. Ibid.

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  21. David Malmquist, “Annual sea-level report cards add nuance to latest IPCC assessment,” William & Mary, Feb. 16, 2022; Tiffany Fishman, Mahesh Kelkar, Christopher Tomlinson, and Rob Cary, “Transportation trends 2022–23,” Deloitte Insights, Nov. 8, 2022.

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  22. William D. Eggers, Felix Dinnessen, Tsuyoshi Kono, Mark Price, and Glynis Rodrigues, “Government at warp speed,” Deloitte Insights, March 25, 2024.

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  23. Danish Energy Agency, “Offshore wind development,” June 2022.

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  24. Eunbyeol Jo and Yebin Yang, “Up in the air: Limitations of Korea’s offshore permitting process and policy recommendations,” Solutions for Our Climate, January 2023; Alice Hancock, “EU must speed up approval of renewable projects, Denmark says,” Financial Times, Aug. 29, 2022; ENGIE, “Offshore wind power is on the rise in France,” Sept. 7, 2022.

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  25. Michigan Infrastructure Office, “Project Dashboard,” accessed Dec. 4, 2024.

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  26. State of Michigan Office of the Governor, “Michigan infrastructure projects,” accessed Dec. 4, 2024.

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  27. Economist Impact, “Infrastructure for good: Building for a better world,” accessed Jan. 29, 2025.

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  28. Economist Impact, “Infrastructure for good video series - How can infrastructure create positive social outcomes?” video, accessed Jan. 29, 2025.

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  29. Rana Sen, Samantha Riemer, Taylor Cobb, and Carley Weted, “Tackling America’s water crisis: A cross-sector approach,” Deloitte Insights, Sept. 19, 2023.

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  30. Ibid.

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  31. SmartCitiesWorld, “Building a future-ready city: Helsinki,” Nov. 5, 2024.

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  32. Ibid.

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  33. Johannes Truby, Pradeep Philip, and Bernhard Lorentz, “Financing the green energy revolution,” Deloitte, Nov. 16, 2023.

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  36. Johannes Truby, Pradeep Philip, and Bernhard Lorentz, “Financing the green energy revolution,” Deloitte, Nov. 16, 2023.

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  37. Dinesh Shiwakoti and Devayan Dey, “The hybrid annuity model for public-private partnerships in India’s road sector,” ADP South Asia Working Paper Series No. 94, August 2022.

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  39. New South Wales Department of Planning, Industry and Environment, “NSW electricity infrastructure roadmap,” November 2020; Queensland Government, “Queensland renewable energy zone roadmap,” March 2024.

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  40. Climate Council, “What are renewable energy zones?

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  41. Elizabeth Findell and Gina Heeb, “Construction industry braces for one-two punch: Tariffs and deportations,” The Wall Street Journal, Dec. 3, 2024.

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  42. Deloitte Center for Government Insights, “The role of cross-sector collaboration in federal agencies,” April 2023; Nate Paynter, Manoj Mishra, Brad Kreit, Monika Mahto, and Sue Cantrell, “Navigating the tech talent shortage,” Deloitte Insights, June 11, 2024.

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  43. Government of Western Australia and Construction Training Fund, “Construction training fund annual report for the year ended 30 June 2024,” September 2024.

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  44. Ibid.

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  45. Ibid.

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  46. Government of Western Australia and Construction Training Fund, “Employer funding,” accessed April 1, 2025.

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  47. Government of Western Australia and Construction Training Fund, “Apprentice funding,” accessed December 4, 2024.

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  48. Government of Western Australia and Construction Training Fund, “Construction training fund annual report: For the year ended 30 June 2024.”

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  50. Preston Fore, “The cybersecurity talent gap is a ‘major issue,’ says a leader at the U.S. cyber defense agency. Here’s what CISA wants you to know about cyber skills and staying safe online,” Fortune, Sept. 17, 2024.

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  51. Office of the National Cyber Director, “National cyber workforce and education strategy,” July 31, 2023.

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  52. Cybersecurity & Infrastructure Security Agency, “Federal Cyber Defense Skilling Academy,” accessed Dec. 4, 2024.

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  53. White House, “Fact sheet: Biden-Harris administration announces National Cyber Workforce and Education Strategy, unleashing America’s cyber talent,” July 31, 2023; CyberCorps, “Start your cybersecurity career with the U.S. government,” accessed Dec. 4, 2024.

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  54. Dakota State University, “Cyber operations (BS),” accessed Dec. 4, 2024; Bart Pfankuch, “How a small SD college became a national cyber powerhouse,” Dakota News Now, Aug. 3, 2024; Alcino Donadel, “This South Dakota university is cybersecurity’s next powerhouse,” University Business, Feb. 16, 2023.

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  55. Dakota State University, “DSU and NSA education partnership offers opportunities,” Jan. 10, 2023.

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  56. Tiffany Dovey, William D. Eggers, Michael Flynn, Irene Walsh, and Jim Ziglar, “Partnering for value: Structuring effective public-private partnerships for infrastructure,” Deloitte, 2010.

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  59. Miguel Eiras Antunes, “Empowering urban ecosystems: City leaders are nurturing diverse partnerships to solve pressing issues,” Deloitte Insights, Nov. 4, 2024.

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  60. The executive’s participation in this article is solely for educational purposes based on their knowledge of the subject and the views expressed by them are solely their own. This article should not be deemed or construed to be for the purpose of soliciting business for any of the companies mentioned, nor does Deloitte advocate or endorse the services or products provided by these companies.

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Acknowledgments

The authors would like to thank Jacqueline London, Kushal Singh, Michael Isman, Stijn Vandeweyer, Sudeep Sinha, and Vishal Rander for providing feedback and suggestions at critical junctures. They would also like to thank Carmen Swanwick from the Utah Department of Transportation for her valuable input in the “My take” section.

Cover image by: Sofia Sergi; Adobe Stock

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