U.S. Power Sector Green Capex Projected to Reach $2 Trillion Amid Resilient Demand Growth

Goldman Sachs analysts led by Brian Singer project US power sector green capex to reach $2 trillion by 2023-32. The analysts see investment opportunities across the power and water infrastructure supply chain, driven by rising power demand growth, aging infrastructure replacement, and enhancing resiliency to extreme temperatures/weather events. They recommend Buy-rated companies such as First Solar, GE Vernova, MasTec, Quanta Services, Xcel Energy, and Xylem.

Goldman Sachs analysts led by Brian Singer have projected that the U.S. power sector's green capital expenditure (capex) will reach $2 trillion by 2032 [2]. This substantial investment is driven by several key factors, including rising power demand growth, the need to replace aging infrastructure, and enhancing resiliency to extreme temperatures and weather events.

Singer and his team have identified significant investment opportunities across the power and water infrastructure supply chain. These opportunities are supported by the "Reliability Imperative," which will continue to funnel capital allocations towards various sectors. The analysts highlight that the U.S. power demand is expected to grow at an annual rate of 2.5% through 2030, necessitating substantial investments to meet this growth [2].

The analysts recommend several Buy-rated companies, including First Solar, GE Vernova, MasTec, Quanta Services, Xcel Energy, and Xylem. These companies are positioned to benefit from the anticipated growth in green capex, particularly in the areas of decarbonization, infrastructure, and clean water [2].

Additionally, the analysts note that the U.S. is on track to spend trillions upgrading its power grid and building new generation for data centers. However, the investment in electric vehicles (EVs) and some other green technologies may be losing momentum due to recent policy changes, potentially pulling total investment below initial forecasts [2].

The projected $2 trillion in green capex by 2032 underscores the significant commitment to renewable energy and infrastructure development in the U.S. power sector. This investment is crucial for achieving the country's sustainability goals and ensuring the reliability and resilience of its energy infrastructure.

References:
[1] https://solarquarter.com/2025/08/25/acwa-power-sec-and-kepco-achieve-financial-close-on-sar-15-billion-rumah-1-and-nairyah-1-ipp-projects-in-saudi-arabia/
[2] https://oilprice.com/Alternative-Energy/Renewable-Energy/US-Power-Sector-Green-Capex-Projected-to-Reach-2-Trillion.html