APAC utilities rethink playbook as AI power demand surges, Bain warns

Executives expect higher restructuring activity through 2026.

Utilities executives expect increased portfolio restructuring through 2026, with 56% forecasting higher levels of divestments, closures, and consolidation, according to Bain & Company.

In Asia-Pacific, the share of executives allocating “significant” capital to transition-focused businesses falls to 32% in 2026 from 42% in 2025. The share allocating “moderate” and “not much” capital rises to 34% each.

Executives also report a shift in funding approach, with those planning to co-invest with technology companies increasing from 35% to 56%. The share planning to raise prices for existing customers falls from 24% to 0%.

Bain noted that utility executives report the highest optimism for artificial intelligence (AI), energy storage, and both advanced and current-generation nuclear technologies, whilst reporting negative sentiment towards low-carbon hydrogen, synthetic fuels, and direct air capture.

AI adoption is most mature in customer service, operations and maintenance, and marketing and sales.

Risk, legal, and research functions are also in rapid adoption stages, whilst capital projects and prospecting remain in early pilot phases.

Across regions, executives report increasing preference for India and China as investment destinations, whilst sentiment towards North America and Europe declines.