FMI Releases Inaugural 2026 Energy and Power Overview

2026-06-25 · Source: The AI Journal · Field: Energy & Utilities — Utilities & Infrastructure, Energy Markets & Policy · Depth: Intermediate, quick

Summary

FMI Corporation has released its "2026 Energy and Power Overview," a first-edition report combining consulting and investment banking perspectives on the U.S. energy and power sector. The report projects U.S. power construction spending will increase from \$158 billion in 2025 to \$255 billion in 2030, accumulating over \$1 trillion in investment by the decade's end. This growth, driven by data centers, electrification, accelerating load growth, aging infrastructure, grid modernization, and rising resilience needs, signifies a durable, long-duration investment cycle. Key highlights include electric transmission and distribution capturing over \$500 billion in cumulative spend, with transmission growing from \$30 billion in 2026 to over \$50 billion by 2030. Thermal generation is the fastest-growing sub-segment at 13.7% CAGR, while utility services M&A is at historic levels.

Key takeaway

For investors and executives evaluating opportunities in U.S. infrastructure, this report signals a robust, multi-decade investment cycle in energy and power. You should prioritize capital allocation towards grid modernization, electric transmission and distribution, and thermal generation, which are projected for significant growth through 2030. Consider M&A strategies focused on acquiring scaled platforms with strong technical differentiation to capitalize on historic demand and investor appetite.

Key insights

The U.S. energy and power sector is entering a multi-factor-driven, trillion-dollar investment cycle through 2030.

Principles

• Investment discipline around durability and technological differentiation creates lasting value.
• Multiple factors, not just data centers, drive the current energy investment cycle.
• Regulatory requirements increasingly drive resilience-focused grid modernization.

In practice

• Prioritize investments in electric transmission and distribution infrastructure.
• Focus on thermal generation capacity to meet data center and industrial demand.
• Evaluate M&A targets with scaled platforms and differentiated technical capabilities.

Topics

• Energy Infrastructure
• Power Construction Spending
• Grid Modernization
• Data Centers
• Mergers & Acquisitions
• Thermal Generation
• Electrification

Best for: Executive, Investor, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by The AI Journal.