US electric companies will spend almost $208 billion in 2025 and more than $1.1 trillion over the next five years on the power grid, according to industry group Edison Electric Institute.
Utility spending is growing rapidly. For comparison, investor-owned utilities made capital expenditures of $765 billion in the five-year period through the end of 2024, new from EEI shows. The spending over the next five years will support the construction of new infrastructure to meet rising demand from data centers, artificial intelligence and economy-wide electrification.
The increasing requirements have put the US power grid under strain, said David Weeks, supply chain industry practice lead at Moody’s, in a statement on Monday.
“The escalating energy crisis in the United States is poised to serve as a constraining factor across various industries,” Weeks said, adding that companies must consider power-grid limitations and permitting delays when planning their supply chains.
Photo: Transmission lines and a power substation in Austin. Photographer: Jordan Vonderhaar/Bloomberg
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