A Black & Veatch report finds that 53% of utilities cite limited available power as the top obstacle to getting data centers online, with transmission (47%) and substation upgrades (46%) close behind.
The Black & Veatch 2025 Electric Report reveals opportunities and gaps in electric grid planning in the United States as the AI-driven data center surge continues, it said on Nov. 3.
“Utilities are racing to adapt as rapid growth in AI and cloud computing is reshaping the energy landscape in real time,” it said.
Black & Veatch is a global engineering, procurement, consulting and construction company.
Only 19% of survey respondents expressed strong confidence in forecasting the increase for power loads, according to the Black & Veatch 2025 Electric Report. “The industry is requiring sharper tools, bolder thinking and faster decisions to meet this unprecedented demand for infrastructure and market speed.”
Now in its 19th year, the Black & Veatch 2025 Electric Report “reveals a sector at an inflection point, where meeting surging electricity demand has overtaken emissions reduction as the primary focus point for utilities,” Black & Veatch said.
Driving this demand are data centers, which have construction timelines of just 18 months – “far shorter than the six years typically required to develop supporting utility infrastructure.”
The Black & Veatch 2025 Electric Report shares insights from 500 U.S.-based energy stakeholders, offering a front-line view into the decisions, technologies and strategies defining the future of the U.S. electric industry, it said.
Along with the data center findings, insights from respondents shared in the report include:
• Grid digitalization is exposing utilities to escalating cyber threats as device networks expand into the millions: 40% of respondents now prioritize cybersecurity training over investing in new security tools, recognizing technology alone cannot address human vulnerabilities;
• They are prioritizing practical, proven strategies like backup systems (40%), vegetation management (30%) and freeze protection (27%) to address climate impacts;
• Nuclear energy again gained ground as a potential investment with 47% expressing interest in small modular reactors (SMRs);
• Federal climate policy shifts are not reshaping utility plans: 34% expect no impact, and 47% say they will stick to current strategies even if regulations ease;
• Just 22% use unified teams to manage physical and cyber risks despite a 50% rise in substation attacks and growing threats like malware and ransomware.
