Private Equity Is Circling Utilities as AI Reshapes the Grid

Private equity firms are showing interest in utilities as artificial intelligence reshapes the energy grid, according to recent reports. The growing presence of data centers and hyperscalers on energy grids is causing electricity prices to rise, prompting both Democrats and Republicans to band together in opposition. While the Trump administration encouraged tech companies to provide their own energy sources, concerns have been raised about the potential creation of a separate, unregulated power system alongside the existing one.

Additionally, the focus on private investment in utilities may lead to a speculative bubble, as utilities sell off non-core assets to raise funds.