Report published September 27, 2026
North American Power, Utilities and Infrastructure: McKinsey: Power to the People (and Data Centers)
RBC Capital Markets · September 27, 2026
Following an investor event with McKinsey Senior Partner Zak Cutler, RBC notes a moderating yet historically bullish outlook for North American electricity and gas demand driven by data centers and LNG exports. As projects transition from announcement to execution, turbine shortages, EPC labour constraints, and affordability pushback will separate winning utilities and midstream operators.
Read the remaining 4 pages
Finvaulta summarizes RBC Capital Markets's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.North American electricity and gas demand outlook remains structurally bullish driven by AI data centers and LNG exports, though near-term growth expectations have moderated due to supply chain and political headwinds.
- 2.U.S. data center power demand is projected to expand from 50 GW to 120 GW by 2030, but severe execution bottlenecks will limit gas turbine delivery to ~80 GW out of 110 GW announced, creating opportunities for behind-the-meter generation.
- 3.LNG export capacity additions and gas-fired power generation will require ~30 Bcf/d of incremental North American gas demand by 2035, significantly accelerating midstream capex and cash flows.
Table of Contents
- McKinsey: Power to the people (and data centers)
- U.S. Utilities: They have come, time to build it
- U.S. Midstream: Responding to customer needs
- Canadian Power, Utilities & Infrastructure: No power struggle here
- Demand: Data centers and LNG continue to drive respective growth outlooks
- Supply: Moving from paper to steel brings a new set of challenges
- Affordability: Merits monitoring, particularly for the utilities
- Canada's New Capital Playbook
- LNG: Closing an emerging supply gap
- Data centers: Joining the global rush
Report data
Exhibit 1 - Canada's levelized costs for LNG are lower cost than most jurisdictions, but above the Middle East
| Metric | Estimate | Context |
|---|---|---|
| U.S. data center power demand | 120 GW | Projected expansion of U.S. data center demand. |
| Realistically deliverable new natural gas capacity vs announced | 80 GW | Delivery constraints caused by turbine availability and EPC capacity. |
| U.S. electricity demand annual growth rate | 2-3% | Annual growth rate forecast compared to historical rates. |
| North American incremental natural gas demand from LNG | 21 Bcf/d | Estimated incremental LNG demand, of which roughly 13 Bcf/d is located in the U.S. |
| North American incremental natural gas demand from power generation | 9 Bcf/d | Estimated incremental gas demand from new natural gas-fired power generation. |
Access the full report
And others from the leading tier 1 banks.
Free account: read previews and a daily allowance of full reports. Pro removes the daily limit.