Cloudera released energy and utilities findings from its Data Readiness Index 2026, showing that despite strong data visibility and governance, the sector faces cost overruns and workforce readiness challenges that impact AI outcomes. The report says data readiness has emerged as a critical factor in AI success, and that challenges in data accessibility, governance, and infrastructure performance are preventing organizations from operationalizing AI and realizing value at scale. AI is described as a critical tool as providers modernize infrastructure, manage distributed energy resources, and pursue grid reliability initiatives. Eighty-six percent (86%) of respondents report visibility into where their data resides, 79% say they can access their organization's data regardless of format or location, and 65% report that all or nearly all of their data is governed. However, for 25% of energy and utilities respondents, cost overruns emerged as the leading reason AI and analytics investments fail to deliver expected returns, and data literacy and training were identified as a significant obstacle to effective data use. Compared to other sectors surveyed, energy and utilities organizations reported relatively few operational disruptions caused by infrastructure performance. Morgan Bowling of Cloudera said AI can play a transformative role only if organizations can trust and access the data that powers it.