Energy: Securing Reliable Power for an Electrified Future

The electrification boom will require a diversified power system and a large grid buildout, creating investment opportunities across energy generation, fuels, storage, and network equipment.

• U.S. electricity demand could rise 49% by 2050, while about 93 GW of dispatchable capacity may be added from 2025 to 2030 against estimated new demand of 220.5 GW, leaving a projected 58% gap.
• Data centers could reach 20% of U.S. electricity demand by 2035 from about 6% today, while announced U.S. manufacturing investment has reached $1.76 trillion since January 2025.
• Natural gas is expected to provide the largest share of energy supply additions through 2050, while solar and wind could drive the most additions over the next five years because of their shorter development timelines.
• Grid interconnection queues contain roughly 50% more capacity than the entire installed U.S. fleet, and the median wait for commercial operation has increased to five years from 2005 levels.
• U.S. electric utilities could invest about $1.2 trillion from 2026 to 2030, with nearly half directed to transmission and distribution; backlogs at Quanta Services, Eaton, and MasTec have risen more than 50% since the third quarter of 2024.

Takeaway: Investors may have limited exposure to the electrification buildout because energy, utilities, and grid equipment represent about 6.4% of the S&P 500, while meeting global power needs could require $21.9 trillion through 2040 and actual outcomes remain sensitive to permitting, financing, supply chains, grid connections, fuel prices, and demand.