Quick Take: Electricity Is a Growth Industry

Electricity is a growth industry because rising demand is driving utility investment while electrification expands beyond data centers.

• Utility investment rose more than 80% between 2016 and 2025, and the Edison Electric Institute projects nearly $1.4 trillion of member investment through 2030.
• Planned capital expenditure is 17% higher than last year, with Southern Company citing a contract backlog and American Electric Power expecting its pipeline to grow over the next three to six months.
• Executives at the EEI conference said data-center demand is widely misunderstood, with Alliant Energy signing an Iowa contract that keeps surrounding residential base rates unchanged for six years.
• Evergy said virtually all industry contracts signed over the past two years require data-center customers to pay higher power prices than residential customers.
• American Electric Power views data centers in Texas as attractive sources of state tax revenue and expects utility demand to remain resilient after the midterm elections.

Takeaway: Investors should view electrification as a broad utility and infrastructure theme, with the Tema Electrification ETF offering exposure to utilities, power equipment, transmission infrastructure and grid modernization while regulatory approval remains a risk to investment recovery.