Power companies continue to modernize operations while managing cost pressures, compliance risks and rising power demand. At the same time, they face constraints from aging infrastructure, labor shortages and siloed data.

Our recent industry research shows 66% of power sector leaders expanded their use of digital tools and data sources over the past year. These investments aim to reduce delays, support regulatory readiness and offer better asset performance. However, tool adoption without integration rarely leads to meaningful change.

Let’s examine the sector's biggest challenges and how intentional data management enables power players to gain the speed and visibility necessary to act decisively and mitigate risks.

Increasing Pressures on Time, Cost and Delivery

Power companies continue to push toward greater efficiency and performance, while also working to integrate renewable energy sources to support the global energy transition. However, persistent operational challenges remain. In our survey, 67% of power sector executives identified missed project milestones and budget overruns as critical operational issues, underscoring the strain on planning and cost control. Additionally, 64% reported unplanned production downtime as a major obstacle to consistent energy delivery and system reliability. But why?

These hurdles often stem from limited visibility. Disconnected systems, manual processes and delayed information can slow decisions and create blind spots that impact project success. Real-time access to trusted data empowers teams to manage projects more proactively, address risks early and maintain momentum under pressure.

Safety and Compliance Risks Keep Growing

Cybersecurity and safety continue to demand leadership attention. The data connectivity report reveals that 61% of power executives face significant business risks due to cybersecurity gaps. Another 55% pointed to safety compliance as a serious concern.

Digital transformation will need to support both resilience and regulatory alignment. When leaders lack real-time insights, they lose control over safety-critical systems and compliance exposure increases.

Data Inconsistencies Limit Decisions

Survey findings show that poor data quality contributes directly to the industry’s most persistent challenges:

• 78% report major disruptions from poor data integration
• 76% experience delays because of outdated or incomplete data
• 69% face limitations from inaccurate reporting

Disconnected systems and manual reporting block access to key metrics. The result? Teams lose time reconciling sources instead of responding to risks or managing performance.

Workforce Gaps and Legacy Tools Add to the Strain

Skills shortages and aging infrastructure reduce agility. Our research found that 77% of respondents view knowledge gaps as a major challenge. Another 70% cited disruption from staff turnover.

Manual processes, cited by 74% of leaders, and outdated systems, reported by 69%, drag on efficiency. These structural issues prevent companies from meeting power demand or capitalizing on the integration of renewable power.

Leaders Expand Technology Use to Regain Control

Power companies continue to invest in tools that promise greater visibility and control, despite continuing the data connectivity study:

• 73% use visualization dashboards regularly
• 65% apply knowledge graphs and information mapping
• 68% apply digital thread technology at a high level

Yet many still rely on fragmented and legacy systems, which undercut the benefits of newer tools. For example, 67% of businesses frequently use paper-based information. Other common tools include 3D models (66%), 2D design (59%), point clouds (59%) and geospatial data (58%).

The good news? Organizations that strengthen data connectivity can respond more quickly to disruptions, improve compliance and drive efficiency. For instance, digital twins and predictive technologies now support asset monitoring, maintenance and delivery. In fact, 80% of leaders say their interest in digital twins has grown as they explore AI-driven insights to optimize operations. When fully integrated, they reduce downtime and maximize asset value.

Integration Makes the Difference

Many companies add digital tools without a clear integration strategy. As a result, 55% of executives say their transformation efforts fell short of expectations. Disconnected platforms slow progress, increase workload and reduce visibility.

Digital thread technology connects systems, assets and teams through a unified data structure. In companies that use it consistently, 71% of stakeholders access the data they need, compared to 57% in less mature environments. To deliver real value, digital tools must work together. Without connectivity and continuity, complexity grows and business challenges persist.

Digital Maturity Creates Operational Advantage 

Unified data architecture empowers energy leaders to make faster, smarter decisions. Platform-based strategies preserve context, enhance visibility and improve traceability — enabling scalable transformation.

Power companies that align systems, people and processes through digital thread technology gain a competitive edge in compliance, resilience and performance.

Download the Hexagon Data Connectivity & Visibility eBook to explore global findings and learn how digital thread technology supports compliance, resilience and transformation across the power sector.