KPMG Survey: Emerging Energy Leaders Grapple with Costs, Uncertainty, and the AI Boom

December 3, 2025 – Surging demand from artificial intelligence (AI), data centers, and electrification is forcing leaders to rethink how energy is sourced, financed, and delivered, according to a new survey from KPMG LLP, the U.S. audit, tax, and advisory firm.

Energy leaders are focused on broadening the energy mix to meet increasing demand. They know that winning the AI race depends, in large part, on this ability to meet rising demand. Leaders are clear-eyed about the hurdles they face, citing expensive capital and regulatory uncertainty as obstacles to delivering the energy required to power the future. Importantly, these dynamics, while challenging, have not brought action to a standstill. Instead, they are forcing strategic decisions about which energy sources to prioritize, which mechanisms to use for financing new projects, and how to supply energy that is affordable, reliable, and available.

"While challenges with costs and permitting remain, the industry has reached a crucial turning point where it's no longer waiting for perfect conditions to act,” said Todd Fowler, KPMG U.S. Energy, Natural Resources, and Chemicals Leader. “The momentum is now driven by market needs and a clear mandate to build a resilient energy mix that powers emerging technologies of the future."

Key findings include:

Energy sources:

• 71% say the energy mix must expand to meet surging technology-driven demand, especially from AI and data centers.
• While 72% anticipate significant growth in nuclear energy, 42% list cost as the top barrier to including utility-scale nuclear as part of the energy mix moving forward.
• 48% of leaders say energy storage, including battery storage, as their current energy focus.

Hurdles:

• 73% cite the application and permitting process as the most significant barrier to energy transmission. 
• 49% cite tariffs as a top supply chain issue. When asked about the potential impact of tariffs, 9 out of 10 point to increased materials costs
• When asked about the greatest challenge to establishing the right talent pool, 35% said talent drain through retirement, up from 14% in 2024.

How to finance this:

• 31% view traditional financing as the most relevant mechanism for growing emerging energy.
• To address supply chain challenges, benefit from domestic content, and reduce tariff risks, 75% of organizations have diversified their suppliers.
• The percentage of executives who believe more than 10 years of government incentives is necessary dropped to 12% from 30% in 2024.

“High capital costs, regulatory uncertainty, and supply chain disruption are not new dynamics that energy leaders face. The stakes are just higher now. Energy leaders will be served to focus on the elements in their control. This includes building resiliencies where they can, figuring out the right deal structures for financing the future, and scenario planning for different regulatory outcomes,” continued Fowler.

About the survey

The KPMG US Emerging Energy report surveyed more than 100 c-suite executives and senior leaders at emerging energy companies primarily with US headquarters, across a mix of private, public, and privately held pass-through ownership structures, as well as several non-profit and government/public sector organizations.

About KPMG LLP

KPMG LLP is the U.S. member firm of the KPMG global organization of independent member firms providing audit, tax and advisory services. The KPMG global organization operates in 142 countries and territories and has more than 275,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. 

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