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

  • Federal Budget Key Changes

    The Federal Government last night handed down its 2026 Budget, with the largest reforms since the Howard era. With the Iraq war and ongoing fuel crisis causing uncertainty across markets and a focus on ‘intergenerational fairness’, there are some key changes for investors. The Budget, if it moves forward into legislation, will see scaled-back tax

    Published On: May 13th, 2026By

  • RBA Cash Rate Update

    As widely expected, the Reserve Bank of Australia raised the official cash rate at its meeting on Tuesday, increasing it by 25 points to 4.35%. It’s the third consecutive hike this year, completely reversing last year’s cuts. Inflation remains above the RBA target of 2–3%, with headline inflation reaching 4.6% for the 12 months to

    Published On: May 8th, 2026By

  • Why More Australians are Seeking Financial Advice Later in Life

    There is a growing trend we’ve noticed in financial planning, and that’s Australians seeking financial advice later in life.  While for some this may be due to a limited capacity to seek financial advice while younger, it also reflects the increased financial complexity that comes with age. Whether it’s financial planning for retirement, or help

    Published On: May 7th, 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