Catenaa, Wednesday, November 11, 2026- Global electricity transmission and distribution infrastructure will require approximately $2.9 trillion in investment between 2026 and 2030, HSBC says.
According to HSBC’s Transition Market Outlook, the sector will need around $590 billion annually to keep pace with rising demand for power from the AI infrastructure boom.
“TMO forecasts $2.9tn global investment in transmission and distribution between 2026 and 2030 (≈ $590bn/year),” HSBC said.
HSBC also said that much of the investment will focus on replacing ageing equipment and expanding grid capacity.
Quoting BloombergNEF, HSBC said that US data centre capacity could increase from 47 GW in 2025 to 194 GW by 2035.
HSBC said US data centres could account for nearly half of additional electricity demand through 2030, while global electricity demand could rise about 15% by 2030.
HSBC’s breakdown of the $2.9 trillion investments includes $1.4 trillion in reinforcement/upgrades, $1 trillion in replacement of ageing equipment, and $600 billion in new connections.
The bank said that power systems can’t benefit from cheap generation if they can’t deliver it, as the grid is increasingly the constraint.
Moreover, HSBC said that the expansion of electricity networks could face delays because manufacturers are struggling to meet demand for specialised electrical equipment.
“This is also a supply-chain story: transformers, cables and switchgear are bottlenecks with multi-year lead times,” the bank said.
Global data centre electricity consumption could increase from 415 TWh in 2024 to 945 TWh in 2030, according to the IEA.
HSBC added that companies involved in modernising electricity networks may benefit from an extended investment cycle.
