While there are many issues CEO’s face daily, we’ll focus on the broader industry challenges facing CEO’s in the here and now.
- Surging Power Demand from AI & Data Centers
- Data center-driven electricity use is rising sharply—currently 6–8% of U.S. generation, projected to reach 11–15% by 2030 DeloitteFinancial Times.
- This demands urgent investment in infrastructure—utilities are ramping up capital expenditures, expected to reach $212 billion in 2025 (up 22% from the prior year) Financial Times.
- Ground-level implications include strained grid capacity and the risk of transferring costs to consumers, prompting pushback from regulators and the public Financial TimesTom’s HardwareWall Street Journal.
- Aging Infrastructure and Grid Resilience
- More than 70% of the U.S. grid is over 25 years old, leaving it vulnerable to failures, extreme weather, and other risks Utility Dive.
- Addressing this entails modernizing physical assets and deploying predictive maintenance—leveraging digital twins and condition monitoring systems to avoid disruptions Utility Dive.
- Cybersecurity and Smart-Grid Vulnerabilities
- As grids become more digitized and interconnected—especially via smart grid components—attack surfaces broaden, increasing cyber risk Utility DiveWikipedia.
- Cyberattacks have surged (71% increase noted recently), making strengthened defenses, NERC CIP compliance, AI-based threat detection, and response planning non-negotiable priorities Utility Dive.
- Workforce Shortages and Talent Retention
- Utilities face a significant talent gap: nearly half of the current workforce is expected to retire within the next decade, and non-retirement attrition is also climbing Utility Dive.
- CEOs must invest in recruitment, digital skills training (especially around AI/ML), mentorship programs, career development, and diversity to ensure institutional knowledge isn’t lost Utility Dive.
- Policy & Regulatory Uncertainty
- Federal policy swings—such as funding rollbacks or deregulation—introduce confusion around clean energy programs and planning com.
- Simultaneously, regulatory frameworks struggle to keep pace with evolving grid needs: permitting delays, funding ambiguity, and unclear cost allocation models (e.g., who pays for data-center infrastructure) add complexity comAdvanced Energy UnitedRedditS&P Global.