Data centers—fueled by the rise of artificial intelligence (AI), machine learning, and other digital innovations—are consuming an ever-larger share of electricity. Utilities are using varied approaches to handle higher demand, from advanced grid technologies and rate structures to multiple sources of electricity to closer collaboration with large energy users. This can help balance reliability with affordability while exploring cleaner alternatives.

Some utilities are extending the life of existing nuclear plants or exploring new nuclear technologies, including small modular reactors. Nuclear energy’s clean baseload power can help address electric grid issues by stabilizing supply as renewables expand. Federal incentives and rising inventor interest are further spurring innovation and deployment in this area.

Incorporating distributed energy resources (DERs)—such as rooftop solar, electric vehicle storage, and battery storage—can offer flexibility, reliability, and potential cost savings. Virtual power plants (VPPs) and microgrids can optimize these resources, enhance grid resilience, and help meet evolving electricity demand. Stakeholders who view these diverse technologies as a sum of parts can enhance their operational efficiencies and competitive advantage.

From nuclear specialists to smart grid analysts, the race to recruit and retain skilled talent is intensifying. Some utilities are launching specialized training academies, upskilling current employees, and partnering with educational institutions. This focus on workforce transformation can help support the integration of new technologies and manage dynamic shifts in the energy landscape.

Beyond fuel switching and renewables, some utilities are pursuing carbon capture, carbon offsets, and direct air capture to address “last mile” emissions. As policy and innovation evolve, a diverse carbon management toolkit can help utilities pave the way for cleaner, more sustainable operations.