Global utilities are shifting investment priorities towards grid reliability, infrastructure resilience and affordability, while continuing to pursue decarbonisation, according to new research by IFS.

The study, conducted by Censuswide among 850 senior utility executives, found that ageing infrastructure, extreme weather, cybersecurity threats and rising electricity demand from data centres and electrification are driving a more balanced investment strategy.

The findings show that 26 per cent of utilities are reassessing asset portfolios to prioritise existing grid infrastructure. 

Industrial AI is also gaining importance, with 57 per cent of executives identifying it as critical to reducing operational costs and 47 per cent saying it is essential for optimising asset performance and managing rising demand.

However, data fragmentation remains a major obstacle to modernisation. Nearly half of respondents (49 per cent) said operational data silos hinder real-time decision-making, while only 33 per cent described their asset lifecycle management capabilities as advanced. 

A further 51 per cent reported using asset management systems that operate in silos with limited predictive capabilities.

Utilities are also exploring energy storage and new generation technologies to strengthen supply security. 

Advanced geothermal energy was identified by 22 per cent of respondents as having the greatest long-term impact on securing clean baseload power, followed by small modular reactors at 18 per cent. 

Meanwhile, 46 per cent said AI was critical to accelerating renewable and distributed energy integration.

The research highlights the growing need to combine targeted infrastructure investment, modern asset management and AI to improve reliability, control costs and support the energy transition.