U.S. Power Infrastructure Faces Trillion-Dollar Investment Surge

The inaugural 2026 Energy and Power Overview from FMI Corporation signals a period of growth that doubles the pace recorded between 2010 and 2025. According to the report, electric transmission and distribution will account for over $500 billion of this total, with transmission spending alone expected to jump from $30 billion in 2026 to more than $50 billion by the end of the decade.

Blake Angelo, a partner at FMI Consulting, notes that while data centers capture the headlines, the cycle is fueled by a broader set of pressures including industrial growth and mandatory resilience upgrades. Simultaneously, the sector is seeing historic levels of merger and acquisition activity. Russell Clarke, managing director at FMI Capital Advisors, attributes this to fierce competition for high-quality, scaled platforms, noting that current market conditions favor firms that prioritize technological differentiation and long-term asset durability. Thermal generation is currently the fastest-growing sub-segment, expanding at a 13.7% compound annual growth rate to satisfy the need for firm, dispatchable capacity.