Energy Evolution Rising prices, rising capex: what's ahead for the US power sector in 2026
Dec 30, 2025
Travis Miller, a senior financial analyst at Morningstar Securities Research, and Sam Huntington, research director at S&P Global Energy, dive into the U.S. power sector amidst rising electricity prices. They discuss a $1.1 trillion capital expenditure forecast by utilities and the massive influence of data centers on demand. The duo also explores how policies are shaping renewable energy investment, the shifting landscape of utility stocks driven by new investor interests, and the implications for retail rates in the coming years.
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Utilities Face A New Electrification Wave
- Utilities plan a multidecade capital build similar to mid-20th century electrification.
- Travis Miller says $1.1 trillion may be low and 2026 will reveal if spendings reach $1.5 trillion or more.
Data Centers Drive Future Load Growth
- Data centers are central to forecasted load growth and investor expectations.
- Travis Miller forecasts roughly 3x electricity demand growth from data centers between 2024 and 2030.
Share Data-Center Revenues With Customers
- Utilities can return some data-center revenues to residential customers to ease affordability concerns.
- Travis Miller notes Southern agreed to give back over $500 million to residential customers in Georgia.