KPMG Global Energy Conference: AI is Redefining the Power System
HOUSTON — June 2026 - New research revealed at the 21st annual KPMG Global Energy Conference shows the U.S. power system is entering a period of structural change driven by AI, data centers, and electrification, putting pressure on infrastructure, accelerating technology adoption, and reshaping how energy is delivered and financed. At the same time, new consumer data from KPMG and consumer intelligence agency Civic Science reveals growing public concern about energy affordability and reliability.
“We’ve entered an era where energy demand is accelerating, volatility is constant, and the entire system is being asked to move faster than it was ever designed to,” said Todd Fowler, KPMG U.S. Energy Leader. “Until we modernize how infrastructure gets approved, we simply won’t move fast enough to meet the scale and urgency of demand ahead.”
Unprecedented demand shattering the traditional utility business model
New KPMG research explores why tech and power must accelerate together, or fragment apart. The survey includes the perspective of 100 US senior leaders across the power, technology, and data center ecosystem.
- Grid‑only reliance is declining, with 76% of respondents willing to adopt behind‑the‑meter (BTM) or hybrid power models, and 92% believing these approaches are becoming a permanent feature of power delivery.
- Additionally, 91% say utilities should play a leading role in providing hybrid or interim power to big projects. Consumers feel similarly, as new data from consumer intelligence firm Civic Science shows.
Utility systems are hitting physical limits just as massive data center loads threaten grid stability and tech companies are taking notice. Fears of unreliable power rank as the second leading reason data centers are pulling back from grid dependence. This pits hyperscalers against the utility's core mandate: reliable, affordable power for all ratepayers. The result is structural change. Large loads are controlling their own power supply to de-risk timelines and costs.
The new bottom line: How can we get power the fastest?
Technology Outlook: What Wins in the Race to Power the AI Economy
With speed to power being paramount, KPMG evaluated emerging power technologies across the dimensions - attractiveness, momentum, and maturity – to enable a clear prioritization of the technologies best suited to meet current and future needs.
Based on the analysis:
- Conventional generation technologies represent the highest level of maturity in the US power system, with natural gas and coal characterized by long-established fleets, standardized designs, and fully integrated commercial deployment.
- Solar, wind, hydropower and biomass are commercially mature renewable technologies, with widespread deployment and proven operating models, but remain semi-dominant due to lower overall generation share relative to legacy thermal sources.
- System evolution now diverges between emerging firm-power and advancing grid enablers. Fusion, SMRs, hydrogen, power and geothermal remain at earlier maturity stages, while smart grids, microgrids, EV charging infrastructure, BESS and VPPs are progressing toward broader adoption to support electrification and renewable integration.
Americans are concerned about data centers affecting energy costs.
- 67% of U.S. adults express concern about data centers impacting local grid capacity and driving up energy costs.
- The concern is even higher among people over the age of 45 (76%) and among higher income households (74%)
When asked how to solve this, they remain divided.
- 33% favor accelerating permits to lower electricity costs. 25% oppose this idea due to reduced environmental and community review time.
Most agree major construction should be faster.
- When assessing multi-year government approval timelines for major construction, a combined 57% of adults believe the process either takes too long or needs to be faster.
- When looking at multi-year review timelines for power plants and pipelines, 28% of the public believes the current system takes too long and must be accelerated.
When it comes to gas prices, consumers in different states have different sensitivity levels.
- For residents in states with higher gas costs such as California, their tipping point is $6 per gallon causing 25% of adults to consider canceling or shortening vacations, with 24% reporting to have already canceled plans.
- For residents in mid-cost gas states such as Florida, their tipping point is $5 causing 25% to pull back on travel, with 24% reporting to have already canceled plans.
- For residents in low-cost gas states such as Texas, their tipping point is $4.50 causing 19% to pull back on travel, while 14% have already canceled plans.
- Grid at a crossroads: The AI demand shock and the future of power: KPMG US survey of 100 senior leaders across electric utilities, hyper-scalers, and data center operators from companies with an annual FY25 revenue between $1-$50+ Billion in April 2026
- Emerging power tech: Current and future state analysis: KPMG US conducted market research assessing key technologies based on function and maturity, and identified a range of KPIs to assess and compare the attractiveness, momentum, and maturity of US power technologies. If interested in reading this report, please reach out to the media contact below.
- CivicScience survey reflects the sentiment of over 1,000 Americans, matched to the census, surveyed from May 14 – May 18, 2026. Additional information about Civic Science methodology: https://civicscience.com/methodology/
About KPMG LLP
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Q&A
| Question | Answer |
| What is the central finding of KPMG’s latest energy research? | KPMG’s research shows the U.S. power system is entering a period of structural change driven by AI, data centers, and electrification. This shift is increasing demand, putting pressure on infrastructure, accelerating technology adoption, and reshaping how energy is delivered and financed. |
| Why is energy demand increasing so rapidly right now? | Demand is accelerating due to the growth of AI, large-scale data centers, and broader electrification. These forces are pushing the energy system to operate faster and at greater scale than it was originally designed to support. |
| How are utilities and energy providers being impacted? | Utilities are facing physical infrastructure limits while being expected to support significantly larger and faster-growing energy loads. This is creating tension between maintaining reliable, affordable power for all customers and meeting the needs of large energy-intensive users like data centers. |
| What role are alternative power models playing in this shift? | Alternative models are becoming mainstream. 76% of surveyed leaders are willing to adopt behind-the-meter (BTM) or hybrid power solutions, and 92% believe these approaches are a permanent feature of future power delivery. |
| Do leaders believe utilities still have a central role in power delivery? | Yes. Despite the rise of hybrid models, 91% of respondents believe utilities should play a leading role in providing hybrid or interim power solutions for large-scale projects. |
| Why are data centers reconsidering their reliance on the grid? | Concerns about reliability are a major factor. Fear of unreliable power is the second leading reason data centers are pulling back from grid dependence, prompting many to explore self-supplied or hybrid energy solutions. |
| How is this shift affecting the traditional utility business model? | The traditional centralized utility model is being challenged as large energy users increasingly control their own power supply to reduce risk and accelerate timelines. This is contributing to broader structural change across the energy ecosystem. |
| What is the new priority shaping energy investment decisions? | Speed to power has become the defining priority. Organizations are increasingly focused on how quickly energy can be delivered to meet growing demand, particularly for AI and data infrastructure. |
| Which energy technologies are currently the most mature? | Conventional generation technologies, such as natural gas and coal, remain the most mature, with established fleets and standardized deployment. Renewable sources like solar, wind, hydropower, and biomass are also commercially mature but represent a smaller share of total generation. |
| Which emerging technologies are gaining traction? | Technologies such as smart grids, microgrids, EV charging infrastructure, battery energy storage systems (BESS), and virtual power plants (VPPs) are advancing toward broader adoption to support electrification and renewable integration. |
| Which energy technologies are still in early development? | Emerging firm-power solutions—including fusion, small modular reactors (SMRs), hydrogen, advanced geothermal, and power technologies—remain at earlier stages of maturity and deployment. |
| How concerned are Americans about the impact of data centers on energy? | Concern is widespread. 67% of U.S. adults are worried that data centers could strain local grid capacity and increase energy costs, with concern rising to 76% among those over age 45 and 74% among higher-income households. |
| What do consumers think about speeding up energy project approvals? | Opinions are divided. While 33% support accelerating permitting to help lower electricity costs, 25% oppose it due to concerns about reduced environmental and community review. |
| Do Americans believe infrastructure approval timelines are too long? | Yes. 57% of adults believe multi-year government approval timelines for major construction projects either take too long or should be faster. Additionally, 28% specifically say power plant and pipeline approvals must be accelerated. |
| How sensitive are consumers to rising energy and fuel costs? | Sensitivity varies by region. In high-cost states like California, gas prices reaching $6 per gallon prompt 25% of adults to cut or cancel travel. In mid-cost states like Florida, the tipping point is $5 causing 25% to pull back on travel, compared with $4.50 in lower cost states like Texas, where 19% report scaling back travel. |
| What does this research suggest about the future of the energy system? | The findings point to a more decentralized, technology-driven energy system where hybrid power models, faster infrastructure development, and new technologies are essential to meeting demand while maintaining reliability and affordability. |
| What research supports these findings? | The insights are based on a KPMG survey of 100 senior leaders across utilities, hyperscalers, and data center operators conducted in April 2026, KPMG analysis, as well as a CivicScience survey of more than 1,000 U.S. adults conducted May 14–18, 2026. |
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