A J.P. Morgan Asset Management podcast interview with ASCE infrastructure chair Darren Olson says U.S. infrastructure has improved to a C, but remains underfunded, with especially large gaps in power, water, and roads as AI/data centers, EVs, and resilience needs drive demand.
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This episode of Alternative Realities interviews Darren Olson, chair of the American Society of Civil Engineers’ Committee for America’s Infrastructure, about the 2025 Report Card for America’s Infrastructure. Olson explains that ASCE, founded in 1852 and representing roughly 160,000 civil engineers, issues the report card every four years to measure the condition of U.S. infrastructure and signal where investment is needed. The core message is that U.S. infrastructure has improved, but only modestly. The latest report card grade is a C, up from C-minus in 2021, and historically the system spent many years in the D range. Olson frames C as “mediocre,” better than before but still insufficient for U.S. global competitiveness. …
Near term, the actionable setup is in power and utility-linked infrastructure spending, with data centers and EVs keeping grid investment urgent. The main tactical risk is policy uncertainty as federal support rolls off and project timing becomes less predictable.
Over the next few quarters, the base case is continued capex for energy, water, and resilience as demand and infrastructure gaps remain unresolved. The view improves if federal, state, and private funding continue to flow; it weakens if political pushback or budget uncertainty slows approvals.
The structural regime is one of chronic infrastructure underinvestment meeting new load growth from electrification, AI, and climate adaptation. That implies persistent demand for capital in utilities, water systems, and transportation rather than a one-off rebuild cycle.
The 2025 U.S. infrastructure report card grade improved to C from C-minus in 2021.
Olson explicitly states this is the second increase and that the current grade is a C.
A C grade means U.S. infrastructure is in mediocre condition, with some systems doing well and others vulnerable to risk.
He directly defines the grade in qualitative terms.
Energy infrastructure need tripled from the 2021 report card to the 2025 report card.
He says the need in energy infrastructure basically tripled.
How do you rate the power and electricity sector in the report card?
Olson says energy was one of the lower grades. The need in energy infrastructure roughly tripled from the 2021 report card to the 2025 one. The total ten-year need for infrastructure is about $1.9 trillion, with about $600 billion in needs in the energy sector alone. The sector is changing dramatically due to shifts in generation (renewables, battery storage) and surging demand from data centers and electric vehicles.
Where is the increased demand for energy coming from?
Olson explains the demand side has shifted dramatically. Data centers are the biggest new driver — they require their own substation that could power an entire municipality. Additionally, electric vehicle charging stations contribute. Demand is expected to roughly double within our lifetime, whereas ten years ago there was nearly zero demand growth due to efficiency improvements like LED lights.
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