America’s energy infrastructure earned a concerning D+ grade in ASCE’s 2025 Infrastructure Report Card. The assessment shows a decline from previous years while electricity demand grows faster than in two decades. Weather-related outages have increased dramatically, with 80% of disruptions since 2000 caused by extreme conditions. Despite recent legislative support, the energy sector faces a $578 billion funding gap. More substantial investments are needed to meet future power needs.
America’s power grid is struggling to keep up with modern demands, earning a disappointing D+ grade in the American Society of Civil Engineers‘ 2025 Infrastructure Report Card. This marks a decline from previous reports, raising serious concerns about the nation’s ability to meet growing energy needs.
The overall U.S. infrastructure grade improved to a C, but the energy sector remains a critical weak point among the 18 categories assessed.
Electricity demand is growing faster than it has in two decades. By 2030, electric vehicles and data centers alone are expected to require an additional 35 gigawatts of power. This surge, driven by rapid electrification and AI technology, is putting immense pressure on an already strained system.
America’s grid faces unprecedented demand growth—35GW needed by 2030 just for EVs and data centers.
Weather-related challenges are making matters worse. Since 2000, about 80% of electricity outages have been caused by weather events, with most occurring in the last decade.
Distribution systems are particularly vulnerable to these disruptions, highlighting the urgent need for more resilient infrastructure. These extreme weather events resulted in property damage costs of $182 billion just in 2024.
The funding gap for America’s energy sector has reached a staggering $578 billion. Experts estimate that $1.89 trillion in near-term investment is required to bring energy infrastructure up to acceptable standards.
While spending has increased—$27.7 billion on transmission and $50.9 billion on distribution in 2023—it’s not enough to close the gap.
Utilities now face the challenging task of doubling existing transmission capacity. This expansion is necessary not only to meet growing demand but also to integrate renewable energy sources needed to achieve federal and state net-zero emissions goals.
Recent legislation like the Infrastructure Investment and Jobs Act and the Inflation Reduction Act are supporting grid hardening and renewable technologies.
However, the ASCE report emphasizes that more action is needed. The D+ grade for energy infrastructure mirrors the highway conditions grade, reflecting similarly inadequate conditions and persistent safety concerns across critical infrastructure systems.
Transitioning to thermal energy systems could provide significant advantages through their 90% efficiency rates and ability to operate reliably for over 50 years regardless of weather conditions.
Without significant improvements, America’s power grid may struggle to deliver reliable electricity when and where it’s needed most, potentially affecting millions of homes and businesses across the country.
