US energy companies are pouring record sums into building power plants and transmission lines to meet electricity demand from data centres, raising concerns that the costs may be passed on to consumers.
According to Jefferies investment bank, utility capital expenditure is expected to hit $212.1bn in 2025, a 22.3 per cent rise year on year and a 129 per cent increase compared with a decade ago. Investment is forecast to reach a record high in 2027 of $228.1bn.
“Companies are investing in generation and transmission to reindustrialise the economy,” said Julien Dumoulin-Smith, power utilities and clean energy analyst at Jefferies.
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