Powering the Next Era of Demand: Executing Within an Evolving Framework

For decades, utility investment was largely focused on reliability, hardening infrastructure, and maintaining existing systems during a period of relatively flat demand. With limited load growth, utilities focused on upgrading existing infrastructure rather than expanding it.

That dynamic is now shifting. A new wave of large, concentrated load driven by data centers and the rapid growth of digital infrastructure is significantly increasing electricity demand and changing how infrastructure is planned and delivered.

Meeting this moment will require more than expanding existing systems. It means building entirely new capacity across substations, transmission, and generation.

As Consertus Energy/Utilities Market Leader Patrick Cotter explains, “For the last 20–30 years most investment has focused on reliability and hardening the grid because there wasn’t much load growth. Now we’re seeing a huge spike in demand that’s driving new substations, transmission, and generation.

Utilities and energy developers must now scale their capital programs to meet this demand while maintaining or improving safety, reliability, and cost for existing customers.

Data center growth is reshaping infrastructure investment

Much of this new demand is highly concentrated. Data centers installing large amounts of compute require significant power in specific locations, placing immediate pressure on existing grid infrastructure.

To support these loads, utilities must expand transmission systems and build new substations where demand is emerging. At the same time, rising load growth is increasing the need for additional power generation capacity and shaping when projects can move forward.

In some cases, developers are exploring behind-the-meter generation to secure power supply and reduce reliance on grid expansion. The Microsoft Thermal Energy Center in Redmond, Washington, recognized as the 2023 ENR Project of the Year, is one example of this approach in practice. The system leverages on-site geothermal energy to reduce energy consumption by approximately 50%, helping meet growing energy demands while advancing sustainability goals. Consertus (formerly OAC Services) served as Owner’s Representative for the project.

The scale challenge: delivering far more infrastructure

While demand is accelerating, many utilities are still structured to deliver a relatively predictable level of capital projects each year. Their systems, processes, and teams were not designed for the level of expansion now required.

As demand grows, capital programs are being pushed to scale quickly, in some cases doubling or even tripling in size. When that happens, planning, budgeting, and delivery systems can begin to break down, limiting visibility and coordination across projects.  

Addressing this shift requires rethinking how capital programs are planned and delivered. Workforce constraints make it difficult to scale through hiring alone, with many teams already at capacity and a limited pool of experienced infrastructure professionals. This is forcing organizations to find new ways to deliver more work with existing resources.

There are also growing questions around who should fund the infrastructure required to support large new loads. Public perception and stakeholder alignment are becoming increasingly more important, as concerns around new development can create resistance at the community and policy level. Continued progress will require stronger alignment between utilities, developers, and public stakeholders.

In practice, these challenges often show up before construction even begins. Projects can stall when key prerequisites such as funding, permitting, land acquisition, or power purchase agreements are not aligned early. Without that alignment, even small issues can quickly become major delays.

As Patrick notes: “Everything that worked to execute $100 million worth of projects often breaks when suddenly the organization needs to deliver $200 million or more in infrastructure.

Digital tools are transforming program delivery

As capital programs grow in size and complexity, digital tools are becoming essential to how utilities manage and deliver work. Integrated program management platforms provide visibility across cost, schedule, and risk, allowing teams to better understand performance at both the portfolio and project level.

These systems also help remove ambiguity from decision-making by clarifying approval paths and responsibilities, making it easier to track progress and maintain accountability. With this level of insight, leaders can quickly identify the drivers behind cost or schedule variance earlier and take action sooner.

Program teams can move seamlessly from a high-level portfolio view down to individual projects, improving coordination across the program. Because utilities cannot simply scale by hiring more people, digital systems are critical to enabling teams to deliver more work with the same resources.

What energy owners should look for in a program partner

As utilities and energy developers work to scale their capital programs, selecting the right partner becomes increasingly important. Delivering large capital programs requires more than process expertise. It requires a deep understanding of how energy infrastructure is planned, built, and delivered.

In Patrick’s view, one of the most important differentiators is whether a partner truly understands the infrastructure being built.

You want people who actually understand the infrastructure being built, not just consultants who bring frameworks and dashboards without an underlying technical understanding of how the projects work, how they get built, and what purpose it serves your organization.

Beyond technical knowledge, partners must also bring experience managing large-scale capital programs. This includes the ability to coordinate across multiple stakeholders, maintain alignment over long timelines, and adapt to evolving project needs.

Digital capability is also critical. Partners should be able to implement systems that improve visibility, coordination, and control across programs, helping owners manage cost, schedule, and risk more effectively.

Equally important is the ability to integrate closely with owner teams. These programs often span years and require consistent collaboration, making it essential to have partners who can work seamlessly alongside internal teams and support long-term delivery.

That combination of technical expertise, program delivery experience, and digital capability is what enables Consertus to support energy and utilities clients in delivering complex capital programs at scale.

Building the infrastructure behind rising electricity demand

After decades of relatively limited growth, electricity demand is increasing again, driven by new large loads and changing energy needs. Meeting this demand will require significant investment across generation, transmission, substations, and broader grid infrastructure.

For utilities and private owners, the challenge is not only building more infrastructure but delivering it effectively at the pace now required. This will require stronger program management capabilities, better systems, and more integrated approaches to planning and execution to ensure programs meet their objectives.

At the same time, continued progress will depend on alignment beyond the organization. Government agencies and public stakeholders play a critical role in enabling infrastructure development and must support investment efforts to ensure projects can move forward.

Those that succeed will not only deliver the infrastructure needed today, but also build the capabilities required to manage increasingly complex programs in the future.

Learn how Consertus supports energy and utilities clients in delivering large-scale capital programs.