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EPIC Conference Highlights Energy Security, Datacenter Demand, Utility Growth Themes, RBC Says

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Energy security, datacenter demand and utility investment dominated discussions at RBC Capital Markets' Energy, Power & Infrastructure Conference, which hosted 130 companies earlier this month, the firm said Tuesday.

The conflict in Iran has increased focus on energy security and highlighted the value of energy infrastructure. RBC said investors and companies paid particular attention to export facilities and assets that could benefit from the growth of North American oil and gas production.

Datacenter operators continue to prioritize quick access to power supplies. However, permitting delays, political challenges and customer concerns about latency are becoming more important factors when selecting project locations, RBC said.

Strong demand from energy exports and datacenters continues to create growth opportunities for power, utility and midstream companies. Many management teams said they are using their existing assets and networks to expand their businesses, according to RBC.

As project spending rises, companies are paying closer attention to how they will fund growth. Discussions focused on self-funding plans, temporary increases in debt levels and the possibility of raising capital through equity offerings.

Company executives remained optimistic about renewable energy projects despite mixed investor sentiment. Many highlighted battery storage as an attractive area for growth, citing lower costs and growing revenue opportunities, according to RBC.

Utility management teams remained confident in their multi-year rate base growth outlook, citing a clear investment pipeline. Several companies also said they can address customer affordability concerns while continuing to secure constructive regulatory outcomes.

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