USA: Investor-owned electric utilities in the United States are set to invest more than $1.1 T between 2025 and 2029, according to a new report from the Edison Electric Institute (EEI). This represents a significant increase in capital spending as the sector races to keep up with surging power demand.
Between 2015 and 2024, capital expenditures totalled $1.3 T, making the electric utility industry the largest capital investor among US economic sectors, surpassing even transportation and retail, said EEI President and CEO Drew Maloney.
The sharp rise in investment is largely driven by data centre growth, with AI-related power needs projected to increase 20 % annually through 2030. While not all proposed data centres will be realised, EEI highlighted additional drivers such as transport electrification, domestic manufacturing expansion, and regional economic growth.
In 2024 alone, the sector added 52 GW of new generation capacity, up from 46.8 GW in 2023. Solar led the way, with installations rising 63 % to 32.5 GW, the fastest growth since 2020. Energy storage additions also climbed 54 % to 11.5 GW.
However, natural gas capacity additions declined sharply, dropping 79 % to their lowest level since 2020, while wind installations also decreased, signalling a maturing market.
EEI says utilities are committed to delivering reliable, affordable power while supporting the US’s energy security and clean energy goals.
Source: Utility Dive
