USA: Investor-owned US utilities are boosting capital spending to record levels, driven by AI data centre demand, ageing infrastructure and electrification.
According to non-profit PowerLines, planned investment has risen more than 27 % to at least $1.4 trillion through 2030, up from $1.1 trillion, excluding privately owned utilities.
The report says AI-related data centre construction is a key driver, alongside climate-related grid reinforcement, population growth and electrification. Utility bills have increased around 40 % since 2021.
PowerLines executive director Charles Hua said rising capital plans often precede rate hike requests. Utilities sought $31 B in rate increases in 2025, more than double the previous year, amid growing public concern.
Spending is concentrated in the South, from Texas to Maryland, with $572 billion planned, followed by the Midwest at $272 B. Major investors include Duke Energy, NextEra Energy, Southern Company and PG&E.
Transmission and distribution account for nearly half of spending, while about 30 % goes to generation. Patricia Poppe highlighted the challenge of balancing profitability with lower consumer rates.
Source: Fortune
