The drivers? You guessed it—AI and data centers. For 2027, the EIA forecasts a whopping 4,397B kWh in demand (up from a record 4,195B kWh in 2025). Renewables are set to meet an increasing chunk of that skyrocketing demand (reaching 27% in 2027), while coal use could continue to drop.
Plus, a spending surge: Equipment price inflation has propelled global grid capex to more than double since 2020, per a Rystad Energy white paper. This year, it's projected to exceed $650B. Prices and delays will likely remain high for the time being, with two- to three-year lead times for transformers and high-voltage circuit breakers.
Molly Glick
Energy Central Team
Wed, Jun 10