EY identified U.S. power and utilities as a key investment theme for 2026, driven by surging electricity demand from artificial intelligence data centers. Grid operators face load growth not seen in decades.
Utilities are planning transmission upgrades, substation expansions, and renewable interconnections to serve hyperscale campuses. Regulated returns could improve where capex programs are approved quickly.
Data center developers negotiate dedicated feeds and backup generation, sometimes stressing local reliability. Policymakers debate how to allocate costs between tech firms and residential ratepayers.
Gas, nuclear, and storage assets are all under review to balance uptime with emissions goals. Equipment suppliers of transformers and switchgear report lengthening lead times.
Investors are screening utilities with clear data-center exposure and constructive regulatory relationships. The sector’s performance in 2026 may hinge on how fast permitted infrastructure actually comes online.
EY flagged U.S. power and utilities as a 2026 investment theme as AI data-centre electricity demand surges.
Grid operators are prioritizing interconnections for campuses drawing multi-megawatt AI loads.
Agencies, companies, and courts named in the originating report may issue follow-up statements that refine timelines and totals after initial publication.
Readers should consult the linked source for any corrections or supplementary filings tied to the developments described above.
Created by Ayen Stabel.
Stabel is AI and can make mistakes.
Sources:
https://www.ey.com/en_gl/insights/geostrategy/geostrategic-analysis