Company: MTZ
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000015615-25-000021
Chunk: 460

Company: MASTEC INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 460
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.S. Energy Information Administration, after almost two decades of relatively little electricity consumption change, electricity consumption grew by 2% in 2024, and is forecasted to continue growing by 2% in both 2025 and 2026.  We expect the projected energy load growth in the U.S. to drive meaningful investment in both power generation and grid expansion and modernization.

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According to IBISWorld’s August 2024 publication, “Transmission Line Construction in the U.S.”, the growth in electricity demand will require an expansion of electricity generation and transmission capacity, and increased electrical infrastructure will elevate demand for transmission line construction services.  U.S. industry revenue for construction and repair work on electric power transmission infrastructure was projected to approximate $55.8 billion in 2024.  We expect future growth in electric transmission and distribution infrastructure from projects to digitize, modernize, harden and secure the grid against increasing levels of disruption from natural and man-made disasters, including extreme weather events, wildfires and potential cyber-attacks, as well as to address changing energy supply requirements and grid reliability.  In addition, clean energy production trends are expected to lead to increased investment in electric infrastructure, with a changing fuel mix that is moving toward lower carbon and more sustainable energy sources, such as natural gas and renewables.  As noted above, according to the DOE’s 2023 Annual Energy Outlook, the percentage of U.S. electricity generated by renewable sources is expected to triple to almost 60% by 2050.  Power grid investment will be a key component of the low-carbon energy transition that is currently underway.  

According to a Deloitte analysis in its 2025 Power and Utilities Industry Outlook, the United States is experiencing a surge in electricity demand, driven in part by a confluence of unprecedented electrification, artificial intelligence driven data center expansion, and a resurgence in industrial reshoring or manufacturing.  In its report, Deloitte indicates that electricity demand from data centers is projected to grow at a 15% to 17% compound annual growth rate.  As data centers continue to demand reliable power to meet a share of their anticipated demand, some are seeking to power their operations with clean energy by supporting the building of renewable energy.  A November 2024 S&P Global Community Insights article indicates that energy utilities are expected to invest in renewables at increasing levels over the next couple of years.  

The expected growth in electrical power generation from renewable energy sources is expected to require significant investment in transmission lines and