#United States #Raleigh #Energy Sector #FMI Corporation #investment cycle

FMI Releases Groundbreaking 2026 Energy and Power Overview

On June 25, 2026, FMI Corporation announced the launch of its inaugural 2026 Energy and Power Overview. This comprehensive report offers an insightful blend of market forecasts and operational insights critical for understanding the significant and transformative investment cycle underway in the U.S. energy and power infrastructure.

Key Findings from the Report

FMI projects that annual construction spending within the U.S. power sector will rise dramatically from $158 billion in 2025 to $255 billion by 2030, culminating in over $1 trillion in cumulative investments by the decade's end. This shift signifies a notable advancement driven by several key factors:

• - Data Centers and Infrastructure Needs: The energy sector is significantly influenced by the growth of data centers and their associated infrastructure, essential for handling increased electric loads and ensuring resiliency in operations.
• - Aging Infrastructure: Many existing systems need urgent upgrades and modernization to support new technologies and increase efficiency.
• - Electrification Trends: As electrification continues to escalate, the demand for diverse energy solutions becomes more pronounced.
• - Resiliency Requirements: Regulatory frameworks are increasingly driving investments aimed at bolstering grid resilience and modernization across transmission and distribution networks.

. As Blake Angelo, a partner at FMI Consulting, states, “Data centers may garner the spotlight, but the prolonged investment cycle is influenced by aging infrastructure, resilience mandates, and growth in electrification and industrial sectors.” He believes that understanding these dynamics will empower businesses to seize upcoming opportunities effectively.

Sub-sector Growth Insights

The report emphasizes that U.S. power construction spending is projected to grow at nearly double the pace observed during the 2010-2025 period, outstripping overall non-residential construction activities through at least 2030. Additional insights include:

• - Electric Transmission and Distribution: This sub-sector is anticipated to generate more than $500 billion in cumulative spending by 2030, with transmission budgets increasing from $30 billion in 2026 to over $50 billion by 2030.
• - Thermal Generation: This sub-segment is on track to become the fastest-growing area with a 13.7% CAGR, reflecting the rising need for firm, dispatchable energy capacities, especially from data centers and industrial clients.

Moreover, investment focused on resilience is increasingly coming from regulatory mandates, which translates into long-term grid modernization programs.

M&A Activity Trends

According to Russell Clarke, managing director at FMI Capital Advisors, market activity related to mergers and acquisitions in power-related services has reached historic highs. “The current landscape offers a unique chance to leverage strong demand and investor interest,” he noted. He emphasized that disciplined investment choices, emphasizing durability and technology differentiation, will distinguish successful players in this evolving environment.

Conclusion

FMI Corporation's 2026 Energy and Power Overview emerges as a vital resource, detailing the dynamics reshaping the energy landscape. With comprehensive data and insights, stakeholders can navigate this massive investment cycle, further underscoring FMI's role as a leading consultant in the built environment.

For those interested in exploring the full report and understanding the implications of these findings for the sector’s future, it is available for download on FMI's platform.

With the energy sector on the brink of significant transformation, having a grasp on these trends is crucial for businesses aiming to thrive amidst changing landscapes.

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For more information or to engage with FMI, please reach out to:
Katie DeRee
Email