December 5, 2025

Massive grid and power investment needed according to BNEF research

Massive grid and power investment needed according to BNEF research

Recent research published by BloombergNEF indicates global grid investment could top $470 billion in 2025, an increase of 16% this year on top of last year’s 15% growth. A portion of this growth is due to stalled infrastructure projects from equipment costs and rising inflation, but it also reflects the massive grid and power investment

by Dejan Pekic

5

December 2025

Massive grid and power investment needed according to BNEF research

Posted by Dejan Pekic

Recent research published by BloombergNEF indicates global grid investment could top $470 billion in 2025, an increase of 16% this year on top of last year’s 15% growth.

A portion of this growth is due to stalled infrastructure projects from equipment costs and rising inflation, but it also reflects the massive grid and power investment needed moving forward.

The grid is central to delivering renewable energy connections, reaching electrification targets and connecting data centres to power, driving this year’s 16% increase in grid investment.

A significant part of this power demand is generated from the rising adoption of artificial intelligence, with data centre projects already reshaping electricity demand in the United States. This huge growth reflects both a surge in data centres and the increasing size of those centres.

Projection figures from EEI Industry Capital Expenditures also indicate accelerated grid requirements, pointing to US$1.1 trillion in US investor-owned electric utilities between 2025 and 2029. This far exceeds the US$1.3 trillion in actual capital expenditures over the previous ten years.

Locally, it was reported this week that AI companies could be required to invest in renewable energy, amid a forecast the technology could use 12% of the Australian power network.

Key takeaways from BNEF

  • Status quo will lead to US$600bn of annual investment by 2050, with US$13.5tn of total spend.
  • Maintenance investment (reinforcement and replacement) accounts for approximately 80% of spend.
  • This is most pronounced in the US, with structural tailwinds of investment in resiliency, electrification, replacement and AI.
  • Grid spend in the US over the next 5 years likely to equate to spend from last 10 years.
  • Huge electricity demands of data centres are driving a significant portion of grid investment growth.

At Newealth, we stay on top of global investment news to provide you with clear, comprehensive and tailored financial advice.

Read More.

 

General Advice Warning:

The information in this blog is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek professional advice before making any financial decisions.
Newealth Pty Ltd ABN 61 091 100 275 | AFSL 231297

Related Posts

  • JPMorgan Guide to the Markets Australia

    According to JPMorgan’s ‘Annual equity returns and intra-year declines’ data released on 30 June, the average ASX 200 intra-year drop over the past 32 years was 13.8% (median 11.5%). While that might seem alarming, what is interesting is what happens afterwards. Despite that recurring mid-year drop, the ASX 200 has still finished the calendar year

    Published On: July 24th, 2026By

  • After the Budget: What Property Gearing Changes Actually Mean for Your Equity

    Weeks on from the Budget and we’ve seen some dramatic shifts across the property market. Investors are pulling back, with a flow-on effect on auction clearance rates, loan enquiries and, for some, borrowing capacity. The revamped capital gains tax (CGT) and property gearing changes in Australia are reducing investor tax breaks and therefore the net

    Published On: July 21st, 2026By

  • Australian Business Owners Lacking Vital Succession Plans

    Around 1.4 million business owners in Australia will retire by 2036 – and 33% have no succession plan. That’s according to PwC’s 12th Family Business Survey, which also found that succession plans may stall due to specialised skill gaps, a need to balance family legacy with innovation and resistance from the senior generation to transition leadership, which was cited

    Published On: July 17th, 2026By

Sign Up

Sign up to receive clear insights on market trends, along with practical financial, investment and lifestyle guidance to help you make confident decisions.

Newealth helps professionals, executives and families plan, invest and protect their long-term financial future.

The CFP® Certification Program is the highest designation in financial planning worldwide. It comes coupled with commitment to the highest ethical standards and sets CFP® professionals apart from the rest.

Address
Level 10, 276 Pitt Street
Sydney NSW 2000
P: +61 2 9267 2322

General Advice Warning: The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.
Go to Top