U.S. utilities are planning a $1.4 trillion spending spree, up 30%, over the next five years amid the AI construction boom |
U.S. utilities are planning a $1.4 trillion spending spree, up 30%, over the next five years amid the AI construction boom
U.S. utilities and power generators are hiking their spending plans to record levels at the same time as consumer utility bills have surged to new highs—and it’s no coincidence.
Investor-owned utility companies increased their capital spending plans by more than 27% to at least $1.4 trillion through 2030—up from $1.1 trillion a year ago—and that’s not even counting privately held companies, according to a new report released Tuesday from the nonprofit PowerLines.
The AI power boom and the wave of construction for data centers is the leading cause of new spending growth nationwide, but it’s a convergence of spending causes that have triggered utility bills to spike about 40 percent since 2021—“with no signs of slowing down”—PowerLines said.
In addition to the AI era, spending also is growing rapidly because of aging infrastructure, grid hardening from rising extreme weather events and climate change, growing electrification, and population growth. In fact, most of the growth in recent years is unrelated to AI, but the AI data center boom is widely expected to become the leading driver in utilities spending—and consumer prices—going forward.
“Investor-owned utilities are signaling a record-breaking wave of capital spending, and history shows that those plans are........