Sector Spotlight: Climate Technology 2026 (J.P. Morgan Payments)

Summary

• The DOE estimates data centers (primarily used for AI) will double electricity demand by 2028.p.5
• Annual additions of 5,000 high-voltage miles are needed to meet growing demand, per the DOE's National Transmission Planning Study.p.6
• Over 70% of transmission lines are over 25 years old.p.6
• Electricity prices have increased nearly 6% between September 2024 and 2025, faster than inflation.p.7
• Funding continues to flow into startups focused on grid reliability and energy storage as power demand accelerates.p.2

Key insights

1. Later-stage financing remains a gating factor as companies move from pilots to first-of-a-kind deployments and onto commercial scale.p.2
2. Solutions focused on the critical minerals supply chain are gaining momentum.p.2
3. IRA incentives are boosting activity in solar, wind and storage sectors.p.5
4. Home insurance premiums are 26% higher than the national average in the most disaster-prone region and 10% higher in another.p.7
5. Rising backlogs of interconnection requests show the need for streamlined processing and approvals.p.6