AI Money Flows Into a Smarter, Tougher Power Grid

A $33M investment highlights growing confidence in AI monitoring as utilities tackle outages, wildfire risk, and aging infrastructure

15 Dec 2025

Investors are increasing their bets on artificial intelligence as a tool to improve the reliability and safety of North America’s power grids, backing technologies that promise to detect problems before they escalate into outages, equipment failures or wildfires.

A $33mn funding round for AI-driven grid monitoring platforms, led by Angeleno Group with support from Energy Impact Partners, underlines growing confidence that digital systems are moving beyond pilot projects and into core utility operations. The capital will be used to scale monitoring tools that provide continuous data on the condition of power lines and related infrastructure.

Utilities have traditionally relied on scheduled inspections and manual checks to manage grid performance. That model is coming under strain as extreme weather events become more frequent, electricity demand rises and much of the network remains decades old. Investors and utilities alike are looking to real-time data to offer a more detailed and timely picture of grid conditions.

“This is about shifting from reacting to failures to preventing them,” said an energy investor familiar with the deal. “Utilities are under pressure to improve reliability and manage risk, and smarter tools change the equation.”

Regulatory scrutiny is also intensifying. In regions exposed to wildfires, storms and heatwaves, utilities are increasingly required to show that they are actively monitoring and mitigating risks. AI-based systems can support regulatory compliance, reduce emergency repair costs and speed up responses when faults occur, potentially limiting the scale and duration of outages for customers.

The investment reflects wider changes in the power sector. Growth in electric vehicles, data centres and broader electrification is pushing electricity demand higher. Rather than relying solely on costly grid rebuilds, utilities are using digital tools to extend the life of existing assets and focus maintenance on the most vulnerable points.

Adoption, however, is not without challenges. New technologies must win acceptance from field crews and regulators, while concerns around cybersecurity, data transparency and measurable performance remain critical.

Even so, investors increasingly view AI-enabled monitoring as a key component of grid resilience and the energy transition. As capital flows into the sector, intelligence is becoming as important as physical infrastructure in defining the future strength of the power grid.