Newton | From capital to delivery
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Investment scale has fundamentally changed
Across the United States, the power sector is entering one of the largest infrastructure investment cycles in decades. After years of relatively flat electricity demand, utilities are now planning for sustained growth driven by data centers, manufacturing expansion, electrification and broader economic development.
$1.4t It is estimated that investor- owned electric companies will invest more than $1.4t in grid infrastructure by the end of the decade. The scale of the shift is becoming visible in utility capital plans. Duke Energy recently expanded its long- term investment plans as load growth accelerated across its service territories. American Electric Power raised its five-year capital plan to $78bn in response to rapidly increasing data center demand. Southern Company, Dominion Energy, NextEra Energy and many others continue scaling investment across: • generation
EPRI estimates that US data centers could account for between 9% and 17% of total US electricity demand by 2030 under certain scenarios. Load growth expectations across multiple utility territories are now materially above historical averages. In Northern Virginia alone, data center concentration has become so significant that transmission readiness, connection timing and system planning are now central strategic issues for utilities, regulators and large-load customers alike. Hyperscale infrastructure is also becoming a broader public policy issue involving: • utility economics • land use • water resources • transmission planning • regional economic development In the last two years, we’ve seen demand growth double, and it will likely continue.” Drew Maloney President and Chief Executive Officer of EEI
• transmission • distribution • storage • grid modernization
At the same time, electricity demand forecasts are changing materially.
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