Data centers. Electrification. Extreme weather. These three forces are converging and putting unprecedented pressure on the electric grid.
Over the next five years, U.S. utilities expect to serve new demand equal to 15 times New York City’s peak load. Most of that growth will come from data centers. This additional strain on infrastructure is increasing electricity costs, deepening a growing affordability crisis for millions of households.
It’s not a simple problem to solve. The reality is that most people don’t know where their energy is going. That lack of visibility makes it hard to shift behavior or reduce usage. Meanwhile, U.S. energy bills are up 11% since January 2025, utility past-due balances have risen 9.7% year-over-year, and many states are rethinking their energy efficiency programs.
At the same time, many utilities are working with aging infrastructure. Among them, first-generation smart meters are reaching the end of their 15 to 20-year lifecycle, prompting widespread upgrades. Upgrades equal opportunity, making now the right time to rethink what a modern grid can do.
To keep power reliable and affordable, utilities need smarter tools and stronger relationships with customers. We need a new approach to energy efficiency–one that takes infrastructure and consumer needs into account. That’s where real-time energy insights and Advanced Metering Infrastructure 2.0 (AMI 2.0) come in.
Smarter Meters, Smarter Grid
AMI 2.0 offers a scalable path forward. These next-gen smart meters do more than measure energy, they unlock a new layer of intelligence at the grid edge. With embedded software and the ability to process ultra-high-resolution data, they become distributed sensors and processors that deliver real-time visibility across the grid.
That data changes everything.
Utilities can better predict and manage demand, avoid costly outages, and deliver a better experience to customers, all while minimizing capital spend on large infrastructure projects.
Adding intelligence to the meter also has the potential to transform the customer relationship. With the right software, utilities can empower people with real-time, device-level energy insights. That turns passive ratepayers into active participants and opens the door to persistent behavior change.
Alliant Energy: A Case Study in Scalable Results
We’ve seen this concept work in the wild. In partnership with Sense and the Cadmus Group, Alliant Energy launched a multi-year program in Wisconsin to explore the power of real-time energy feedback.
The goal was simple – give households actionable, real-time energy insights and see what happens. The results speak for themselves:
- Participants achieved a 4% reduction in electricity use
- Natural gas savings reached 2.5%
- Users saved up to $135 annually
- The utility saw a 10% reduction in peak demand—nearly double the average of similar behavior-based demand response programs
Launched in 2019, the pilot included more than 900 households. Participants received access to the Sense app, which delivered real-time, appliance-level data. Users could spot power-hungry devices, track unusual usage, and shift behaviors to save energy.
And the savings didn’t stop after the first year. According to a report filed with the Public Service Commission of Wisconsin, energy reductions grew over time, proving that insight-driven behavior change is sustainable.
While consumers saved money, the utility also saw significant system benefits. The 10 percent drop in peak demand helped Alliant improve reliability—especially during summer heat waves and emerging winter peaks caused by heat pump adoption.
And because the system used real-time feedback instead of static tips or delayed reports, users were able to act quickly and confidently. That immediacy was key.
As one participant in the pilot said, “I used to participate in a demand response program that controlled my AC, but I never knew what I was actually saving. With Sense, I could see it immediately, and that kept me engaged."
Scaling What Works
This type of real-time energy monitoring is now becoming available through AMI 2.0 rollouts. Pairing smart meters with embedded intelligence creates a clear opportunity to scale this model. Real-time energy insights help consumers make informed decisions about when to use energy, what to upgrade, and how to shift load.
It’s not just good for the customer. It’s good for the grid.
With better data, utilities can plan with clarity, respond faster, and operate more efficiently. It’s a collaborative approach to demand management, one that meets rising demand without raising rates.
The pressure on the grid isn’t going away. But neither is the opportunity.
By investing in AMI 2.0 and real-time intelligence now, utilities can deliver long-term benefits for customers and infrastructure. This isn’t just about meters. It’s about creating a new standard for energy efficiency programs that create a connected, intelligent grid that works for everyone.
