Key Takeaways
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The electric utility industry is a growth industry.
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Rising demand is driving nearly $1.4 trillion of utility investment through 2030.1
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Electrification remains the broader theme for investors, with data centers just one part of the demand story.
Attending this week’s Edison Electric Institute (EEI) conference provided a full slate of meetings with utility executives and industry leaders. Despite negative noise around data centers, one key takeaway stood out: electricity is a growth industry.
Investment Is Following Demand
Utilities are spending to meet that growth. Investment has risen more than 80% between 2016 and 2025.2 EEI projects its members will invest nearly $1.4 trillion through 2030,1 with capital expenditures up 17% compared to last year.3
U.S. Electric Utility Investment Is Projected to Rise Through 2030
Projected annual capital expenditures ($ billions)
Source: Edison Electric Institute, Industry Capital Expenditures, Sep 2026.
Management teams also sounded confident about what lies ahead. Southern Company pointed to a backlog of contracts, with more to announce in early 2027. When asked about his confidence in the existing pipeline, American Electric Power’s chief executive didn’t hesitate, saying he expects it to grow over the next three to six months.
Affordability Requires Investment
For most CEOs, affordability was a bigger issue than where the next data center is built. The view at EEI was that the impact of data centers is widely misunderstood, and several executives offered examples of data center customers easing pressure on household bills. Alliant Energy signed a data center customer in Iowa under a deal that keeps residential base rates in the surrounding region unchanged for six years. Evergy’s chief executive noted that virtually all contracts signed in the industry over the past two years involve data center customers paying higher power prices than residential customers. The paradox often missed is that keeping power affordable will require continued investment.
A Calm Read After the Midterms
Utilities in states where the midterm elections brought new leadership struck a calm tone. American Electric Power’s chief executive was not concerned about data center development in Texas, pointing to them as attractive sources of state tax revenue. Executives were also candid about room to improve and called on the industry to engage with and educate new political leaders.
What It Means for Investors
The conversations at EEI reinforced a simple point: electricity is a growth industry, and utilities are investing to meet that demand and keep power affordable. The Tema Electrification ETF (VOLT) invests across beneficiaries of rising electricity demand, including electric utilities, power equipment manufacturers, transmission infrastructure providers, and other companies helping modernize and expand the electrical grid.
