The Most Impactful Utility Industry Trends for 2025

TL;DR

• U.S. power consumption is set to reach 4,163 billion kilowatt-hours in 2025.
• The utility technology market is projected to hit $192 billion in 2025.

Market Highlights:

• Data centers already consume up to 8% of global electricity, and that could jump to 15% by 2030.
• In 2024, renewable energy overtook coal in the U.S. for the first time, now making up over 16% of power generation.
• Nearly 70% of U.S. transmission lines are over 25 years old and struggling to meet growing electricity demand.

10 Hottest Utility Sector Topics in 2025:

1. Load Growth – Energy consumption in AI-driven data centers is set to grow 44.7% annually, reaching 146.2 TWh by 2027.
2. Modernizing Grid Infrastructure – The grid must evolve to handle future energy demands, requiring major investments in smarter, more adaptable infrastructure.
3. Cybersecurity Enhancements – Cyberattacks on electrical substations have increased by 70% in just a year, and the global utility security market is expected to grow 17.43% through 2025.
4. Focus on Energy Affordability – Demand response (DR) programs have already saved 29 GW in the U.S., with over 10 million homes and businesses participating.
5. Net-Zero Transition – Plans are in place to upgrade or build 80 million kilometers of grids by 2040, ensuring clean energy has the infrastructure to support it.
6. Advanced Metering Infrastructure (AMI) – AMI provides a clearer picture of energy consumption, leading to more accurate billing and fewer surprises for consumers, with investment in development continuing to rise.
7. Integration of Artificial Intelligence – AI tools analyze sensor data, past performance, and usage patterns to predict equipment failures and energy usage patterns. 
8. Decentralized Energy Generation – Microgrids and independent power producers are expanding rapidly. In 2023 alone, 510 GW of renewable energy capacity was added globally.
9. Collaboration with Data Centers – Cloud computing and AI are growing fast, and data centers could double their energy use by 2030. The utility sector is working with operators to develop smarter energy solutions.
10. Sustainability Initiatives – Renewable capacity grew 50% in 2023, marking the 22nd consecutive year of growth. The green hydrogen market is also gaining momentum, projected to be worth $30.6 billion by 2030.

The Current State of the Utility Sector

The utility sector might not grab headlines every day, but they’re changing faster than most people realize. Growth may be steady at 0.84% a year, but behind that number is a wave of innovation. More than 4,975 startups are in the game, introducing technological advancements and marking a shift toward renewable energy sources.

Then there’s energy demand. Data centers already consume up to 8% of global electricity, and by 2030, that could jump to 15%. Meanwhile, the race for patents is heating up, with over 4,200 patents filed across 3,000 applicants. The U.S. leads the charge with 1,900 patents, followed by China with 600+. And investors? They’re all in. With an average funding round hitting $100.7 million, there’s no shortage of capital flowing into utilities.

And let’s talk about renewables—because they just hit a major milestone. In 2024, renewable energy overtook coal in the U.S. for the first time, now making up over 16% of power generation. With falling prices for solar and wind, the transition is picking up speed.

So, where does that leave us? With a sector that’s evolving, innovating, and attracting major investment. The only question is—who’s going to lead the next big shift? Maybe it’s those reading this right now. After all, the future belongs to technology. That’s what some experts from Fidelity say:

“Throughout the year, the market’s perception of utilities shifted slowly but dramatically, mainly due to the potential boost from AI and energy demand needed to support this burgeoning area of technology. When the market began to recognize how potent a growth driver this could be for the sector, utilities with exposure to AI rallied solidly.” 

Challenges

Despite these positive trends in the utility industry, the sector is also up against some serious issues:

• Nearly 70% of U.S. transmission lines are over 25 years old, struggling to keep up with growing electricity demand. 
• Meanwhile, red tape remains a huge roadblock—getting regulatory approval can take anywhere from two to five years, slowing down much-needed innovation.  
• Then there’s the uneven distribution of resources. Take solar energy: the Southwest has almost twice the solar potential of the Northeast, creating regional gaps in clean energy access. 

But here’s the good news—technology is moving really fast. Advanced grid modernization, hyperautomation trends, AI-driven energy management, and new battery storage solutions could be our saviors. So, the challenges are real, but so are the opportunities to fix them.

10 Utility Trends That Will Shape The Industry in 2025

What’s going to power the world in the next few years? AI is using more power than ever, and the world is moving away from fossil fuels quicker than the grid can handle. A lot is going on, and it’s not always easy to keep up. So, we did the homework for you and went through reports from trusted sources like Deloitte and the World Economic Forum, which gave us a solid look at where things are headed—not just speculation, but real trends backed by data. So, here we’ve listed 10 utility sector trends—and what businesses should watch out for.

Trend #1: Unprecedented Load Growth

With every new AI model pushing the limits of what’s possible, electricity use is soaring. According to IDC, energy consumption in AI-driven data centers is on its way to grow by 44.7% annually, reaching 146.2 TWh by 2027. And by 2028, total global electricity use for data centers could more than double to around 857 TWh. 

Why such a massive jump? Well, AI isn’t exactly light on power. Running a single AI query takes far more electricity than a basic web search, and as companies lean more on AI, the demand for data centers only grows. Naturally, tech giants aren’t standing still—they’re spending billions on new facilities. In the U.S. alone, companies are expected to spend over $200 billion on data center infrastructure in 2025.

And AI isn’t the only factor adding pressure. More industries are switching from fossil fuels to electricity, pushing demand even higher. Between 2023 and 2028, data centers could be responsible for nearly half of the U.S.’s electricity load growth. 

“We need smarter ways to handle the rising demand,” says the Head of Delivery at Inoxoft, Maksym Troyanchuk. “Advanced power flow control, for example, helps shift electricity from areas with surplus capacity to those that need it most.”

Trend #2: Modernizing Grid Infrastructure

So, we’ve already concluded that utilities can’t afford to ignore the rising electricity demand. But, what’s the solution? Switching to modern grid technologies that make energy distribution more resilient.  

According to Deloitte Insights, utilities are now investing in grid-enhancing technologies (GETs) like smart grids and IoT sensors to make energy distribution more flexible. Overall, grid modernization investment has grown at a 37% compound annual growth rate since 2012, reaching $5.9 billion in 2024, the highest level of annual investment by the studied IOUs.

The International Energy Agency (IEA) backs this up, stressing that without these improvements, bringing more renewable energy into the mix will only get harder. A grid designed for fossil fuels just isn’t built to handle the green shift.

But modernization isn’t just about hardware. AI and predictive analytics are helping them forecast demand, fine-tune energy distribution, and keep supply steady. By 2030, as much as 70% of utilities in developed markets are expected to rely on AI for daily operations. That means fewer blackouts, better efficiency, and a grid that can actually keep up.

So, the grid can’t stay the same if it’s expected to handle the energy demands of the future. Investments in smarter, more adaptable infrastructure are no longer beneficial—they’re necessary.

Ready to make your energy systems smarter and greener? Let us show you the way.

Trend #3: Cybersecurity Enhancements

The more digital our power grids get, the more tempting they become for cybercriminals. Reuters reports that cyberattacks on electrical substations have jumped by 70% in just a year. And that’s more than a statistic—it’s a serious threat to power supply, public safety, and entire communities.  

So, what’s the plan? Utilities are stepping up their defenses, directing investments to encryption, intrusion detection, and AI threat analysis tools. According to Deloitte, cybersecurity spending in the energy sector will rise even more as companies work to keep up with more advanced cyberattacks. And they have no choice. 

A new study from Lloyd’s and the University of Cambridge’s Centre for Risk Studies reveals just how devastating a large-scale cyberattack on the U.S. power grid could be. The report explores scenarios where hackers disrupt the grid across 15 states and Washington, DC, leaving 93 million people without power. The financial fallout? Anywhere from $243 billion to $1 trillion, depending on the scale of the attack.

As you might expect, securing a whole energy grid isn’t as simple as installing firewalls. With more renewables and decentralized systems coming into play, the attack surface keeps expanding. That’s why utilities are rolling out real-time monitoring, immediate response strategies, and stronger security frameworks to keep threats in check. The World Economic Forum highlights this as a must, and the market agrees—the global utility security market is expected to grow at 17.43% through 2025.  

Trend #4: Focus on Energy Affordability

Keeping electricity affordable is becoming a bigger challenge. U.S. electricity prices rose by 5.9% in May of 2024, up from 3.8% in January, according to Bank of America Institute. 

On one hand, we need to upgrade infrastructure to support growing demand. On the other hand, we can’t let prices get too high for consumers. So, how do we strike a balance? One solution that’s gaining traction is demand response (DR) programs, which reward consumers for using less electricity during peak hours.  

And the impact? Pretty significant. According to the International Energy Agency (IEA), DR programs in the U.S. have already saved 29 gigawatts (GW), with over 10 million homes and businesses participating. 

Deloitte Insights points out that as more buildings and electric vehicles use these systems, demand response capacity could reach 300 GW by 2030. That’s a huge leap, made possible by smart meters and digital energy systems that let utilities monitor energy use and connect directly with consumers, all while supporting the shift to cleaner power sources.  

Trend #5: Net-Zero Transition

Reaching net-zero emissions is another challenge that looms over the entire utility sector. To get there, companies need to integrate more renewables into the grid, but that’s easier said than done. 

Managing solar and wind energy takes smart investments in technologies that can handle the complexities of a changing energy system. Energy management systems and data analytics are already playing a huge role, helping keep the grid stable as more renewables come online. Today, around 145 countries have set or are thinking about setting net zero targets, accounting for nearly 90% of global emissions.

According to Deloitte, the sector is also expected to invest over $174 billion into grid modernization. That’s a serious commitment to scaling up clean energy, with the goal of tripling renewable capacity by 2030. More investment also means a more resilient grid, which is critical for keeping the transition safe and reliable.  

Obviously, no company can tackle this transition alone. That’s where collaboration comes in. At COP28, major utilities came together to form the Utilities for Net Zero Alliance (UNEZA), a global effort to fast-track renewable adoption and fix supply chain bottlenecks. They plan to upgrade or build 80 million kilometers of grids by 2040. Our specialist explained:

“Utilities are making real progress toward a greener future by using tools to track their emissions. It’s not just about the tech—it’s a sign they’re serious about being accountable and protecting the environment. For companies focused on their social impact, cutting down on their carbon footprint is more than a goal; it’s woven into how they do business and how they aim to shape a sustainable future.”

Trend #6: Advanced Metering Infrastructure (AMI)

Smart meters, real-time data, and better communication between utilities and customers? That’s the future of energy management. As of 2021, more than 110 million AMI systems had already been installed across the U.S.—that’s nearly 70% of all electric meters. And for good reason. 

AMI gives us a clearer picture of energy consumption, leading to more accurate billing and fewer surprises for consumers. But the real game-changer is dynamic pricing. With real-time data, customers can see when electricity demand is peaking and adjust their usage accordingly, which helps balance the load on the grid and save money.

Plus, with AMI in place, we can manage resources more effectively, cut operational costs, and move toward a more sustainable energy system. And the best part? Customers aren’t just passive users anymore—they’re active participants in shaping how energy is consumed.

Trend #7: Integration of Artificial Intelligence

In utilities, one major area where AI is making an impact is predictive maintenance. Instead of waiting for equipment to break down, you can use AI tools that analyze sensor data, past performance, and usage patterns to catch problems before they turn into failures. 

Take GE’s Predix platform, for example—it monitors power turbines, detecting early signs of wear and tear. The result? A 20% drop in unplanned downtime and significant savings on maintenance costs. 

But AI isn’t just about fixing things before they break; it also helps you predict how much electricity customers will use at different times to avoid waste and shortages. The system crunches numbers from past usage, weather forecasts, and even big events like concerts or holidays to make highly accurate predictions. Better forecasting means you can integrate more renewable energy into the grid without risking instability. 

And, of course, there’s customer experience. As our COO, Nazar Kvartalny, explains:

“AI is making customer service faster and more useful. Now, instead of waiting on hold, your customers can get instant answers about their bills or real-time insights into their energy usage. And it doesn’t stop there—AI can analyze their habits and suggest simple ways to save money and reduce waste, completely tailored to how they use energy.”

Want to reduce downtime and save on maintenance? Discover how AI-powered predictive maintenance can work for you. 

Trend #8: Decentralized Energy Generation

Decentralized energy generation—think microgrids and independent power producers—is gaining ground really fast. Instead of depending on electricity sent from faraway power plants, energy is now produced closer to where it’s needed. This means less energy lost during transmission, a stronger grid, and a system that can quickly adjust to changing needs.

As stated by the International Energy Agency (IEA), the world added nearly 510 GW of renewable energy capacity in 2023—a 50% jump from 2022. No surprise that solar and wind are leading the way, driving the shift toward more localized power generation. As you know, making all this work takes more than just solar panels and wind turbines. That’s why the investments are growing accordingly: by 2030, spending on smart grids is expected to more than double, especially in developing economies. 

So, what does this all mean? Energy is becoming local, flexible, and smarter. And with the right technology in place, decentralized power is the future of the energy utility industry trends.

Trend #9: Collaboration with Data Centers

Every time you stream a video, use cloud storage, or ask an AI to generate an image, data centers are consuming enormous amounts of electricity. And with cloud computing and AI growing, data centers could double their energy use by 2030. That means they might need almost 9% of all the electricity produced in the U.S. 

Of course, you can’t just throw more power at the problem and hope for the best. That’s why the utility sector is teaming up with data center operators to find smarter ways to meet demand.

• One approach? On-site power generation and large-scale energy storage. By adding battery systems, utilities can help data centers balance their electricity use, especially during peak hours.
• Another approach is demand response programs, which allow data centers to tweak their energy consumption based on grid conditions. 

Microsoft’s partnership with Black Hills Energy in Wyoming is a great example of how this collaboration works in practice. Microsoft needed a reliable power supply for its Cheyenne data center, but Black Hills Energy had to make sure that other customers didn’t end up footing the bill. Their solution? A custom electricity rate—the Large Power Contract Service (LPCS) tariff. It gives Microsoft the energy it needs while helping keep rates lower for everyone else. Win-win.

Trend #10: Sustainability Initiatives

Today, sustainability is a major driving force behind new investments and innovations. Companies are moving to cut carbon emissions, and they’re using a mix of advanced technologies to get there. Ever heard of carbon capture systems? These can trap up to 90% of the CO₂ produced from fossil fuel power plants. And then there’s the green hydrogen market, which is expected to be worth $30.6 billion by 2030. Sounds promising, right?

But there’s more to it. Renewable capacity grew by 50% in 2023, the 22nd consecutive year of growth, setting a new record – all thanks to cheaper technology and supportive policies. And let’s be honest—this isn’t only about meeting government regulations. Consumers are paying attention too. According to Carbon Trust, people are more likely to support companies that actively work to lower their carbon footprint. That’s a big deal. Our specialist sums it up well:

“What’s amazing about technology in our energy systems is how it just gets us—it adapts to our needs while also looking out for the planet. Think about AI: it studies how we use energy and even keeps an eye on the weather, getting solar and wind power to our homes exactly when we need it. It’s like having a smart, thoughtful friend who quietly takes care of things. This blend of tech and smart energy use is how we’re building a cleaner, greener future for the next generation.”

Join the movement toward sustainable energy! Contact us and find your perfect solution. 

Let Us Implement Utility Technology Trends in Your Operations

How much time and money do you lose because of outdated utility management systems? Is your grid struggling to keep up with demand? Do sustainability regulations feel like an impossible challenge?

If any of this sounds familiar, you’re not alone. Companies worldwide have the same problems—rising costs, customer dissatisfaction, and increasing pressure to modernize. But instead of patching up old systems, why not upgrade to smarter, data-driven solutions that work for you?

At Inoxoft, we develop software that helps our clients improve service, save costs, and capitalize on the innovative trends in the electric utility industry. Here’s what we can build for you:

• Energy Management Software – Reduces energy waste, optimizes consumption, helps you find inefficiencies, and lowers operational costs.
• Customer Relationship Management (CRM) Systems – Improves service delivery and customer support with a centralized platform that tracks customer interactions.
• Advanced Metering Infrastructure (AMI) Software – Eliminates billing errors and improves accuracy. With automated meter readings, customers get precise bills, and you get fewer complaints.
• Grid Management Software – Prevents outages and stabilizes distribution. AI-driven analytics help predict demand, detect faults, and balance the load in real time.
• Sustainability Tracking Tools – Keeps you compliant with environmental regulations. It tracks emissions, energy efficiency, and carbon footprint.
• Data Integration Services – Connects all your systems into one cohesive network. No more data silos—just smooth, automated workflows.
• Mobile Applications for Consumers – Gives customers insights into their energy usage. They can track consumption, receive alerts, and even adjust settings to save money.

With 10+ years of experience, a team of 200+ experts, and 230+ successful projects, we know how to build solutions that make a real impact. And we know that every business is different, that’s why we don’t believe in one-size-fits-all solutions. Tell us what you need, and we’ll build it. 

Conclusion

New technology is changing the utilities sector very fast. Smarter systems mean more reliable, affordable, and secure services—and keeping up becomes more important than ever.   

We hope this utilities tech outlook gives you a clearer view of where the industry is headed and how you can stay ahead of the curve. Of course, every operation has its own challenges, and finding the right approach takes more than just following trends.

What happens when things don’t go as planned? Equipment fails, supply chains get disrupted, and safety risks pop up. That’s why a trusted technology partner matters as much as the technology itself. Let’s work together to build a solution that fits your operation. Get in touch today to learn more!