Utilities Are Transforming Grid and Asset Management Across North America and Europe -- ISG

As the global energy landscape undergoes rapid transformation, utility companies on both sides of the Atlantic are rethinking how they manage and modernize aging power grids. According to new research from Information Services Group (ISG), an AI-focused technology advisory firm, utilities in North America and Europe are embracing advanced software platforms and third-party services to improve resilience, enable sustainability, and meet the growing expectations of customers and regulators.

From the rise of distributed renewable energy to the surging power demands of AI data centers and electric vehicles, today’s utility providers face unprecedented complexity. In response, grid modernization and asset management are emerging as top priorities — and software innovation is at the heart of the shift.

The Energy Transition Demands a New Infrastructure Approach

In both North America and Europe, legacy infrastructure is being pushed to its limits. Climate change, decarbonization goals, and geopolitical factors like the Russia-Ukraine war have underscored the urgency of transforming the way energy is generated, distributed, and managed.

“North America’s existing power grids cannot support the ongoing energy transition,” said Korey Barnard, ISG partner and utilities industry lead for North America. “A majority of utilities are investing in major grid renovations, embracing rapid software innovation and an expanding array of enabling services.”

In Europe, where energy security concerns have grown sharply in recent years, similar dynamics are at play.

“Europe’s commitment to become climate-neutral by 2050 will require grid modernization in addition to new energy sources,” added Mark Smith, ISG partner and software research leader. “Utilities are transforming grid software to accommodate more connections, higher efficiency and reliable service.”

Software Innovation at the Core of Grid and Asset Transformation

Managing modern energy networks — some of the most complex infrastructures in the world — requires software that is not only interoperable but also intelligent. From AI-driven orchestration to edge connectivity, utilities are deploying platforms that can accommodate multiple generations of technology while enabling real-time insight and decision-making.

Across both regions, utilities are also doubling down on enterprise asset management (EAM) software. These platforms are essential for extending the useful life of critical infrastructure, optimizing performance, and lowering operating costs. ISG predicts that by 2027, most utilities will overhaul their asset management systems to ensure reliable power delivery and improved integration with legacy systems.

Whether in North America or Europe, AI and automation are now central features of leading platforms, enabling predictive maintenance, operational optimization, and enhanced grid stability.

Third-Party Services Play a Strategic Role

Alongside software investments, utilities are increasingly relying on third-party services to manage complexity and fill capability gaps. Providers are delivering consulting, implementation, integration, and managed services that help utilities bring digital transformation plans to life.

“The modernization of utilities requires more than just software — it demands strategic execution,” said Jan Erik Aase, global leader of ISG Provider Lens Research. “Qualified providers offer talent, roadmaps and niche solutions that meet specific utilities’ needs, multiplying the value of new technology investments.”

In North America, providers are especially critical as utilities confront a growing talent shortage, exacerbated by an aging workforce. In Europe, the services landscape is expanding to include intelligent business process management, customer experience platforms, cloud engineering, and cybersecurity — all key enablers of energy transition strategies.

“Europe’s energy transformation requires long-term strategy, implementation and management,” said Julien Escribe, ISG partner and utilities industry lead in Europe. “Leading service providers are essential partners to power and utility companies making this leap.”

Preparing for a Decentralized, Decarbonized Energy Future

Both continents are facing similar challenges — and opportunities — as they move toward a decentralized and decarbonized energy future. In North America, utilities are working to integrate an expanding mix of renewables, battery storage, and microgrids, while balancing traditional infrastructure needs. In Europe, utilities are contending with intermittent energy sources like wind and solar, the rise of hydrogen power, and the surging adoption of EVs as both energy consumers and potential grid resources.

Whether responding to the demands of AI-powered data centers or fortifying the grid against climate volatility, utilities are increasingly turning to digital solutions and expert partners to power the next generation of energy delivery.

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