What Does the Market Look Like? A Power Industry Poised for Growth

Since the start of 2025, one question has dominated conversations: “What does the market look like?” With economic uncertainties, evolving energy policies, and shifting industry dynamics, it’s understandable that professionals across the power delivery sector want to know what’s ahead.

The good news? The market is not just stable—it’s expanding. The latest updates from industry giants Dominion Energy and Duke Energy paint a clear picture: the demand for power is surging, driven largely by the booming data center industry and advanced manufacturing projects.

Data Centers Are Fueling Unprecedented Growth

The rise of data centers continues to reshape the energy landscape. Dominion Energy’s contracted capacity from data center operators surged by an astonishing 88% in the last six months of 2024, bringing its total contracted load to over 40 GW. This isn’t just a trend—it’s a structural shift that shows no signs of slowing. As Dominion’s CEO Bob Blue put it, “What’s undeniable is that data center growth in Virginia is not slowing down. In fact, it’s accelerating.”

Duke Energy is seeing the same trajectory. Data centers now account for half of its pipeline for 2029, with AI-driven computing needs increasing demand even further. As Duke’s incoming CEO Harry Sideris noted, hyperscalers are “full speed ahead,” ensuring that energy consumption will continue to rise.

Major Capital Investments Signal Confidence

Both Dominion and Duke are significantly increasing their capital investment plans, adding a combined $17 billion to their five-year spending forecasts. Dominion alone has increased its 2025-2029 capex by nearly $7 billion to fuel infrastructure expansion in response to accelerating demand. Meanwhile, Duke has expanded its five-year investment plan to $83 billion, marking a $10 billion increase.

Strengthening the Grid with Transmission Investments

Beyond data centers, large-scale transmission investments are shaping the future of power delivery. PJM Interconnection recently approved $5.9 billion in transmission projects across Indiana, West Virginia, Virginia, Ohio, and Maryland. These projects will enhance regional reliability and support increasing energy demands.

A significant portion of this investment—$1.7 billion—will be advanced through a joint venture, Valley Link Transmission Company LLC, involving Dominion Energy, FirstEnergy, and American Electric Power (AEP). This partnership will develop several competitive transmission projects, including two 765-kilovolt transmission lines spanning West Virginia, Virginia, and Maryland, as well as additional substations and grid enhancements in multiple states.

AEP, which operates the nation’s largest electric transmission system, emphasized the urgency of these projects. “Energy demand is growing at a pace our nation has not seen in decades. Building or upgrading our infrastructure to continue delivering reliable power is essential to fueling economic growth and meeting the needs of our customers,” said AEP President and CEO Bill Fehrman.

Powering the Future

The bottom line? The energy sector is on an upward trajectory. With data centers, AI computing, advanced manufacturing, and massive transmission expansions driving demand, utilities are ramping up investment to meet future needs. Whether you’re an engineer, contractor, or service provider, there is tremendous opportunity on the horizon.

So, when you hear concerns about the market, rest assured—our industry is not only growing but evolving to support the next generation of technology and infrastructure. Now is the time to be part of the momentum.