Companies could need energy sovereignty, too

While data centers often get blamed for straining US grids these days, the quest for inexpensive, abundant electrons is as old as Edison’s Pearl Street Station.  

Simply assuming that power will be there when you flip the switch could leave your company exposed to outages and price spikes. It could be a good time to think about pursuing your own version of energy sovereignty—a term first used in the 1970s but that has now become a hot topic as governments and communities look to make their energy supply less dependent on market shifts and geopolitical tensions.  

The rising severity and frequency of extreme weather, combined with fraying energy infrastructure, is leading to more frequent and prolonged outages. The average length of the longest US power outages jumped more than 60% between 2022 and 2025.¹ The annual costs for US businesses most affected by reduced power quality events were estimated at nearly $60 billion in 2022—before the average length of power outages increased.² Those numbers are likely going to get worse before they get better with demand and extreme weather events expected to increase. 

The good news: The business case for on-site energy has improved dramatically. The costs for commercial (non-utility) solar installations in the US fell nearly 80% from 2010 to 2024. And stationary battery storage costs dropped 45% in 2025 from a year earlier.³

To determine if power self-sufficiency should be a strategic priority for your organization or is a lesser concern, consider these pointed questions: 

• How vulnerable is your organization to outages across its operational footprint? Consider both exposure (the frequency and duration of outages) and downtime cost.  
• What’s your forecast for energy prices? If you’re a big power user and anticipate rising prices, the payback period for something like on-site solar panels and battery storage can shrink significantly.  
• What’s possible? There are a range of approaches and energy solutions—off-grid or behind-the-meter configurations, power purchase agreements, and more—but what’s viable for your organization depends on your physical footprint; your utility’s policies; local regulations; and how you weigh risk mitigation, cost reduction, simplicity, and a host of other factors. 

Hope is not a strategy. Inexpensive energy is a gamble few firms can afford. Not every company should pursue energy sovereignty, but the trends and strategic risks I’ve detailed demonstrate that, for many companies, there’s a strong business case to consider. Start with scenario planning—mapping credible futures shaped by your exposure to the energy markets and the whims of the weather. Then, consider the wide spectrum of possible approaches and engage in a frank discussion about when, where, and what kind of action best fits your organization.