This policy paper sheds light on the type of investments that can maximise social returns and help bridge territorial gaps in access to services. It starts by explaining why it is challenging to balance proximity and cost-efficiency in service provision while maintaining quality across territories, highlighting the key role of subnational governments in providing education and health services. It then assesses the extent of territorial inequalities in access to basic education and health care services in G20 countries based on a comprehensive review of the evidence available. Finally, the report reflects on future needs based on demographic projections and offers two main implications for the future of infrastructure investment: 1) the need to tailor strategic and flexible investments to different demographic realities; and 2) the need to support quality infrastructure investment by subnational governments.