The energy demand challenge: A catalyst for lasting change

In a recent episode of Electric Perspectives, a podcast hosted by the Edison Electric Institute, Guidehouse experts Michelle Fay and Chris Rogers shared insights from their panels at EEI 2025, the energy industry’s premier annual event, held in New Orleans. Joining other industry leaders and building on recent Guidehouse thought leadership, the two pointed to critical actions, both operational and strategic, that leaders in the power sector need to take to address growing electricity demand driven by AI, data centers, electrification, and digital transformation. 

Here are some key takeaways from the conversation: 

1. Approach surging demand as an opportunity, not a crisis 
The current demand surge should be viewed as a catalyst for progress. Energy stakeholders can harness this moment to drive transformation. Communication and coordination among utilities, AI data center operators, and government agencies are essential to align infrastructure development, policy, and innovation as the grid evolves. 

2. Accept calculated risks to boost innovation 
Meeting future demand will require a bold, experimental mindset. The industry must move beyond traditional risk aversion and embrace a wide range of technologies and strategies. Microgrids, energy storage, and advanced analytics are tools that can help utilities maintain affordability while scaling capacity. AI, grid optimization, and demand-side innovation will be key to unlocking system-wide benefits. 

3. Get more out of existing infrastructure 
Innovation doesn’t always mean building new assets. Technologies such as dynamic line rating, topology optimization, and power flow control devices offer promising ways to enhance grid flexibility. Advanced forecasting and analytics are also transforming grid operations—enabling real-time congestion management and improving dispatch efficiency. These solutions can increase reliability and efficiency without requiring massive capital investments. 

4. Align resilience, AI, and customer partnerships 
Resilience strategies are evolving alongside customer needs. Behind-the-meter generation and storage systems—often deployed by AI and data center clients—can support the broader grid during peak demand, creating mutual benefits. Utilities are also engaging large commercial and industrial customers in integrated system planning, optimizing generation, transmission, and distribution across service territories and regions. This level of coordination is essential for balancing reliability, affordability, and sustainability. 

Looking ahead: A moment for meaningful action 

Electric companies must act decisively. That means: 

• Accelerating technology pilots
• Adopting flexible, scenario-based planning models
• Building new partnerships across sectors  

This is a pivotal moment. With bold leadership and strategic collaboration, the industry can transform rising demand into lasting opportunity.