AI smart grids spark $378.3b grid spending surge in 2025

Utilities ramp network upgrades as transmission outlay climbs to $586b by 2030.

Global transmission investment reached $378.3b in 2025, up 10.1% from 2024, as utilities expanded transmission infrastructure and deployed artificial intelligence (AI)-enabled smart grid systems to manage rising electricity demand and renewable integration.

GlobalData said investment in substations totalled $274.3b, whilst transmission lines accounted for $104b. It projected total transmission investment to rise to $586b by 2030, at a compound annual growth rate of 9.2%.

The firm said AI is becoming central to smart grid operations, supporting predictive analytics, machine learning, forecasting, monitoring, and system optimisation across electricity networks.

Utilities are combining AI with IoT-enabled infrastructure and forecasting tools to improve efficiency, reliability, and renewable integration.

Its Smart Grid: Strategic Intelligence report said AI supports forecasting, monitoring, and fault prediction across grid systems.

It added that companies such as Solcast and RisingStack use AI and satellite data to forecast solar irradiance and photovoltaic output, supporting curtailment management and reserve scheduling.

It said the Hornsdale Wind Farm uses AI models based on atmospheric and performance data to improve wind forecasting accuracy, whilst National Grid uses sensor data to monitor assets, predict equipment failures, and reduce downtime.

Rehaan Shiledar, Power Analyst at GlobalData, said investment growth reflects government initiatives, renewable integration, and demand for grid resilience, alongside wider adoption of smart meters, AI, and IoT.

The report added that smart grid development is advancing through digital twins, microgrids, and electric vehicle (EV) integration, enabling more decentralised and bidirectional energy flows.

GlobalData said ABB Electrification uses digital twin modelling and dynamic line rating to improve transmission and distribution performance.

It added that Hitachi Energy and GE Vernova support microgrid deployment through distribution automation systems, grid control software, and integration of distributed energy resources and storage.

It said EV integration is a key driver of smart grid development, citing GNA Energy’s launch of “GNAi”, an AI platform for grid optimisation and smart meter integration in 2026.

GlobalData also noted that EDF uses Distributed Energy Resource Management Systems to integrate solar, wind, and battery storage into grid operations.

It said virtual power plants aggregate distributed energy resources, including rooftop solar, residential batteries, EV chargers, and industrial loads, into dispatchable units.

Xcel Energy, for example, operates a VPP with Itron and Tesla using the IntelliFLEX DERMS platform to support grid stability during peak demand.

GlobalData said smart grid systems are being deployed to improve operational efficiency, manage variability in renewable generation, and support electrification across transport and heating systems.