INSIGHTSSERIES
Power & Utilities | Smart Grid
January 5, 2026
Year Ahead: Five Must-Watch Power Sector Trends for 2026
The rapid growth of data centers, electrification, and manufacturing is driving a step change in electricity demand, compelling regulators and grid operators to revisit.…. Read the full report
Key Takeaways
- States are revising utility rate structures, interconnection rules, and grid planning to accommodate surging electricity demand from data centers even as federal agencies move to accelerate AI infrastructure expansion.
- Federal agencies are accelerating fossil fuel development through new leasing opportunities, investments to expand the U.S. coal industry, and revisions to regulatory requirements for oil and gas producers.
- While federal policy shifts have narrowed the pathway for renewables, states continue to support distributed energy and battery storage, alongside long-term resource planning frameworks, to manage a changing generation mix.
