Research

2026 Energy & Utilities Industry Outlook

5 key trends shaping energy and utilities in 2026

November 18, 2025

birds eye view of city with green spaces

Energy & Utilities Trends in 2026

A decade of demand is arriving all at once
Data centers and electrification are driving massive load growth, forcing utilities to overhaul planning cycles and grid infrastructure to maintain reliability.
Customer affordability is at a tipping point
Rising rates and capital costs are colliding with customer expectations for choice and control, requiring data-driven affordability strategies and transparent communication.
Cyber risk, AI adoption, and workforce transformation are peaking
The convergence of AI integration, cyber threats, and talent shortages demands utilities strengthen defenses, upskill teams, and modernize systems simultaneously.
Data and AI are now the core of the utility
Clean, governed data enables faster, more confident decisions across operations, capital planning, and customer engagement, turning analytics into the heartbeat of the modern grid.
Public trust will become a prerequisite for regulatory approval
As infrastructure investments scale, utilities must engage regulators and the public with transparent, data-backed cases that tie innovation directly to customer value.

The Year Utilities Redefine Reliability

"The energy and utilities sector faces defining challenges in 2026. Surging demand from data centers is testing grid limits, reliability and affordability are top–of mind for customers, and cyber threats are increasing alongside AI adoption.

Utilities that thrive in 2026 will rely on a disciplined approach to grid management, cybersecurity, and stakeholder alignment—all underpinned by analytics-driven decision making. More resilient utilities are within reach, but leaders must act now to not be left behind. And regulatory pushback and uncertainty regarding capital expansion plans to meet reliability and safety needs are top of mind for all utilities, requiring focus on value creation for all stakeholders."

Paul A. DeCotis,

Senior Partner, Energy & Utilities