Utilities Step Into a New Demand Supercycle

This commentary, led by Saketh Reddy and Dane Smith, outlines how accelerating U.S. electricity demand is reshaping the growth trajectory for utilities 

• Power demand is set to rise more than 50% by 2050, driven by AI data centers, industrial reshoring, and broad electrification, with data-center load potentially tripling by 2028.

• Utilities have rebounded sharply: Q3 earnings grew 23.1% YoY, all subsectors posted gains, and forward P/E multiples have expanded as investors price in long-duration capex cycles.

• More than $1 trillion in planned grid investment through 2029 positions the sector as a defensive-growth hybrid benefiting from rate-cut expectations and persistent AI-driven load growth.

Explore the full report to assess how this power-demand supercycle may redefine utilities’ earnings and valuation landscape.