Redesigning Utility Infrastructure for a Resilient Future

Written by David (DJ) Morimanno, Field CTO, North America at Xalient

13 November 2025

The utility sector is undergoing the most significant transformation in its history. Decarbonisation, digitalisation and decentralisation are reshaping how energy, water, and communication networks must operate. After decades of under-investment, infrastructure is reaching breaking point — and modernisation, resilience and security are no longer optional. They are urgent.

Demand is rapidly rising as electrification accelerates and AI-powered data centres expand. At the same time, climate targets and regulatory pressure continue to tighten. Incremental upgrades won’t close the gap — utilities must rethink how they build, run, and secure critical infrastructure.

And the scale is huge.

In the UK, the National Energy System Operator (NESO) estimates £40bn per year is needed between 2025–2030 to hit Clean Power 2030 targets. Across Europe, annual investment of €462bn is required this decade to achieve climate neutrality. Meanwhile, in the US, water and grid modernisation requires trillions over the next 20 years.

This isn’t just a funding challenge — it’s a fundamental change in how utilities operate, plan, and secure services.

Aging Networks, Rising Threats

Much of today’s infrastructure was built for a different era — before EVs, before smart grids, before AI, before persistent cyber-threats. Networks, water treatment plants, and transmission systems are ageing, creating outages, inefficiency and risk.

The pressures are compounding:

  • Electrification of transport and heating

  • Growth of AI and high-power compute

  • Water scarcity and population growth

  • New communication requirements

  • Geopolitical and supply-chain instability

Regulation is increasing too — not just around climate targets, but around resilience, cybersecurity, and service continuity.

Utilities can’t stretch old systems any further. They need secure-by-design architecture that can flex, withstand disruption and scale for future demand.

Security and Operational Technology Gaps

Despite these pressures, many utilities fall short in Operational Technology (OT) security. Partial implementation of ISA/IEC 62443-3-3 standards and outdated architectures leave major security gaps between supervisory control and enterprise layers.

Legacy systems often rely on air-gapped assumptions, outdated identity management, and minimal patching, leaving utilities vulnerable to AI-enabled attacks, anomalies, and threats from emerging technologies like quantum computing. Recent events, such as the Iberia energy outage, highlight the fragility of relying solely on commercial networks without independent communication channels.

Building Resilient, Future-Ready Infrastructure

To achieve long-term utility resilience, organisations must adopt modular, adaptable systems designed for flexibility and failure isolation. Key strategies include:

  • Modularity and Loose Coupling: Isolate failures and enable upgrades for physical infrastructure, networks, and control systems.

  • Zero Trust Architecture: Authenticate and authorize every device, user, and network path with least-privilege access.

  • Strong Identity and Cryptography: Ensure verifiable identity, secure credentials, and post-quantum cryptography.

  • Advanced Monitoring and Threat Intelligence: Enable anomaly detection, threat hunting, and intelligence sharing across all network layers.

  • Strategic Partnerships: Collaborate with OEMs and regulators to embed security, interoperability, and compliance in next-generation infrastructure.

Standards like NERC/CIP provide a framework, but proactive adoption is critical to operational resilience.

Partnering for Transformation

At Xalient, we help utilities navigate complex regulatory and digital landscapes with a maturity-based approach. From initial assessment to design, build, and managed operations, we support utilities in aligning with compliance frameworks and industry standards.

Our expertise spans network transformation, Zero Trust security, and identity management at scale, helping organisations achieve carbon neutrality, digital transformation, and resilience. Utilities should partner with experts who can deliver scalable solutions, meet audit requirements, and implement OT/IT convergence safely and securely.

Collaboration with regulators and OEMs ensures that infrastructure is AI- and quantum-ready, operationally robust, and strategically prepared for decades of evolving demands.

Leading the Way Forward

The stakes for utility leaders are high, but so are the opportunities. By embracing modern architecture, advanced security, and strategic partnerships, utilities can transform infrastructure challenges into a foundation for long-term strength, sustainability, and resilience.

The time for incremental change is over. Bold action, strategic collaboration, and a commitment to resilience will define the next era of utility transformation. With the right approach and partners, utilities can create future-ready infrastructure that withstands both today’s pressures and tomorrow’s threats.

Final Thoughts: Cybersecurity Is Now a Leadership Imperative

Cybersecurity isn’t only about protecting data – it’s about safeguarding reputation, customer trust, and business continuity. Organisations that embed cyber strategy at board level will be better positioned to adapt, compete, and grow in a world where digital risk is business risk.

Resilience isn’t built overnight – but it starts with leadership.

Want to Talk Cyber Resilience?

Xalient helps global organisations design and implement strategies that strengthen security, reduce risk, and improve operational continuity. Get in touch today to see how we can help your board take cyber seriously.

Search

Categories

HIGHLIGHTS

Follow us

Linkedin X-twitter Facebook-f Youtube
Picture of David (DJ) Morimanno, Field CTO, North America at Xalient

David (DJ) Morimanno, Field CTO, North America at Xalient

DJ helps clients develop IAM strategies that work in complex organisations. He’s an active practitioner and strategist, with nearly 20 years of hands-on experience in implementing market-leading IAM technologies across IGA, PAM, and Access Management. He specialises in building IAM Programs, administering IAM tools, and developing long-term strategies to support organisational objectives and business enablement. 

DJ has a passion for cybersecurity.  He is a trusted advisor for Fortune 500 clients and has helped industry executives successfully execute large-scale IAM programs through deployment.  He has extensive experience in financial services, energy, education, manufacturing, and healthcare industries. 

Speak to an Expert

Explore the power of Xalient Solutions

Get in Touch
close menu icon

Subscribe to our Newsletter!