Currently, we’re seeing many topics in the utility space centered around moving to the cloud, leveraging GIS to extend the enterprise, integrating Artificial Intelligence, and modernizing the grid with advanced technologies. UDC’s focus in 2025 will be on helping its clients further transform into digital utilities by maximizing their digital investments throughout the enterprise. We’re excited to share our 2025 Industry Predictions from some of UDC’s thought leaders.

William Craft, VP Enterprise Architecture
Cloud Adoption
Industry trends have shown significant growth in adopting cloud technologies in recent years, and 2025 will be no different. However, data privacy concerns and the increasing complexity of cybersecurity threats will continue to temper the total embracement of cloud services.
Utilities have historically shared that sentiment, particularly since the US Department of Homeland Security considers their assets critical infrastructure. This has largely contributed to the hesitation many utilities have with allowing their data to reside in the cloud, including spatial data. For many years, the North American Electric Reliability Corporation (NERC) held the position that critical infrastructure data compliance was dependent upon the location of its physical storage device. Since 2017, this has prevented utilities from storing sensitive critical infrastructure data in the cloud.
Early last year, NERC shifted its position on physical storage location requirements by removing references to ‘designated storage locations’ within its Reliability Standards (specifically CIP-004-7), subsequently emphasizing to the Federal Energy Regulatory Commission (FERC) that securing information in the cloud should “depend less on the actual storage location of the information and more on file-level rights and permissions”. This revised NERC guidance is perhaps the most significant news for the utility industry’s technology community, widening the playing field for utilities interested in exploring cloud-hosted solutions.
The market will see a higher level of acceptance and a greater investment in the cloud, especially with the start of a new fiscal year. The horizon is even closer for those utilities able to capitalize on cloud costs. There will be a big push toward the cloud as many utilities refine their corporate IT strategies and build their technology roadmaps. With spatial data being core to a utility’s business operations and with NERC’s fresh outlook on cloud technologies, the enterprise GIS of today’s utility will have a seat at the table alongside other major systems when planning tomorrow’s transformation to the cloud.
Tom Helmer, Executive Solution Architect
Transmission Infrastructure
We will see a good start toward constructing much-needed energy transmission lines. With three times the number of new lines needed to support the number of renewable generation connection applications, coupled with 75% of the $2T federal infrastructure money remaining to be spent, the same infrastructure bill allows the federal government to approve new transmission lines that are in the best interest of the USA and the pro-energy policies of the majority party in Congress and the White House.
Maximizing the Enterprise
Utilities will increasingly focus on maximizing their investments in enterprise GIS technology by using their dashboard and data integration capabilities to enhance gas and power operational awareness for both internal and external stakeholders. The ability to utilize a single source of information instead of relying on up to 65 separate business systems and to deliver the appropriate view for each stakeholder group is a core functionality of enterprise GIS when it is effectively integrated with operational, weather, and threat analysis systems, which most utilities have already invested in.
Increased Natural Gas Production
With the President’s mantra of ‘drill, baby, drill,’ we may witness an increase in the number of natural gas power plants to meet the country’s rising demand for electricity. The increased reliability expectations of the nation’s base load customers and the addition of transmission lines, as referenced in my first prediction, can also contribute to the need for additional gas power plants.
Optimizing with ADMS
With investments in data remediation and the transition from older GIS technologies to the Esri Enterprise ArcGIS Platform, along with its network information management functionality, more electric utilities will be able to activate their ADMS’s model-driven optimization applications. This will help reduce the amount of injected energy needed without relying on customer demand management to change their customers’ behavior.
TJ Houle, VP Solutions Engineering
Responding to Regulations
With significant policy changes in the energy sector—including the repeal of electric vehicle programs, a pause on wind projects, and the opening of previously closed areas to energy exploration—there will be corresponding adjustments in how technology supports the industry. Understanding the new landscape and determining how to best support the industry within this framework will require a robust set of tools for flexible analysis, modeling, and planning. As federal funding mandates evolve, energy organizations will need to invest time in re-examining their corporate strategies and identifying necessary adjustments to operate in this changing ecosystem.
Working Models
Progress in several key technologies (Artificial Intelligence, Machine Learning, Imagery Analysis) is driving a reexamination of business processes in the utility industry. While the vision for a paperless utility has been a trend for years, the next phase is rethinking how folks work—increasing automation and information extraction to free critical resources for higher-value tasks.
Ron Yoshimura, Principal Consultant
Maximizing Grid Modernization Investments
It may seem obvious, but as more electric utilities modernize their systems and move to the Esri ArcGIS Utility Network and Network Information Management System, they will be looking to position the Utility Network as the GIS source data for critical downstream applications, like an Outage Management System (OMS) and an ADMS. These systems are susceptible to good GIS data, often required for utilities to operate high-value applications and optimize grid management capabilities. The Utility Network model has been paramount in driving this high-fidelity data and will continue to do so. In addition, more utilities will leverage ArcGIS Pro capabilities for error-checking routines to ensure the source GIS data will support these downstream products.
Anthony Palizzi, Executive Director Integrated Data
Real-time Data Insights
In 2025, utilities will continue to invest in remote sensing technologies, data management platforms, and Artificial Intelligence and Machine Learning. These investments will enable real-time data collection through continuous monitoring and insights derived from LiDAR, drones and UAVs, satellite and aerial imagery, and thermal imaging. This will in turn enhance vegetation management, asset management and inspection, disaster management, wildfire management, and outage management programs—leading to increased safety, reliability, resiliency, and reduced costs.
These insights will also support utilities’ initiatives and programs in grid modernization, digitalization, distributed energy resources, customer engagement, regulatory innovation, sustainability, decarbonization, and electrification. The need for continuous monitoring will grow to provide more real-time data and insights.
Karen Smith, VP Business Development
Building Modern Enterprises in the Cloud
Looking back at 2024, I predicted a digital transformation breakthrough within electric and gas utilities. While this enterprise transformation takes years to achieve, utilities of all sizes are well on their way.
For 2025, I predict that the electric and gas majors that were hesitant about cloud-based systems and technology (and only allowed on-premise environments) will completely change their viewpoints. They will embrace the cloud and realize the many short- and long-term benefits. To improve operational efficiency, enhance data analytics, meet security requirements, and scale to meet fluctuations in user needs, cloud-computing will be the foundation for modern utility enterprise infrastructure.
Read more thought leadership from our team or contact us to learn how we can help you achieve your 2025 modernization goals.