USA: US utilities are expected to spend approximately $1.1 T on grid infrastructure over the next five years, as electrification increases pressure on power networks.
According to figures from the Edison Electric Institute, utilities are projected to invest $208 B in 2025 alone. The spending is expected to support transmission expansion, substation upgrades, grid automation and distribution modernisation.
The investment comes as the US grid faces rising demand from transport electrification, industrial electrification and AI-driven data centres. These sectors are creating new load profiles and increasing the need for reliable power infrastructure.
For the transformer industry, the scale of investment points to continued demand for high-voltage transformers, substation equipment and grid interconnection infrastructure. However, the build-out also highlights ongoing concerns around equipment availability and delivery timelines.
Transformer lead times have stretched in recent years as demand has exceeded available manufacturing capacity. Large grid programmes may support long-term infrastructure development, but they do not remove short-term supply constraints.
The investment pipeline is also expected to influence site selection for power-intensive facilities, including data centres and industrial campuses, where access to reliable grid capacity is becoming a key planning factor.
The figures underline the central role of transformers and grid infrastructure in enabling electrification and supporting future electricity demand.
Source: Market Scale
