Global | October 3, 2025

Transmission investment to hit $574 B by 2030

The transmission investment stood at $343.2 B and is estimated to reach $574 B by 2030.

 

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GlobalData’s latest report finds that the transmission investment was valued at $343.2 B in 2024, increasing at a rate of 10.5 % over 2023. Substations accounted for a significant part of the 2024 transmission investment at $246.4 B, followed by the transmission lines at $96.4 B. Transmission investment is estimated to grow at a CAGR of 9.2 % between 2025 and 2030.

This growth is being driven by government initiatives, renewable energy integration, the need for greater grid resilience and efficiency and the adoption of technologies such as smart meters, AI and the Internet of Things.

Artificial intelligence (AI) is at the core of smart grid adoption. By using real-time data and predictive algorithms, AI enhances renewable integration, demand forecasting, and preventive maintenance. This reduces outages, optimises power flow, and cuts operational costs. Utilities such as Duke Energy, Xcel Energy, E.ON, and Southern Company are already applying AI and machine learning for asset management, outage prevention, and EV integration. Partnerships between technology leaders like Nvidia and Utilidata are driving new hardware and software solutions for more efficient regional grids.

Another transformative factor is the role of data centres. With their heavy energy demand and advanced digital systems, they are becoming key components of grid evolution. By deploying microgrids, storage, and grid-interactive UPS systems, data centres not only refine their energy use but can also feed electricity back into the grid during emergencies. Initiatives like the DCFlex programme are aligning data centres with utility operations, improving grid flexibility and resilience.

With rising demand for energy efficiency, EV adoption, and renewables, the smart grid market will continue to accelerate. Technologies such as AI, big data, and blockchain are enhancing visibility and automation across networks, while advanced metering and two-way communication are redefining how electricity is generated, delivered, and consumed.

Source: Yahoo Finance