As we look ahead to 2026, energy and carbon management for buildings is entering a new and more complex phase. The intersection of rising electricity costs, accelerating electrification, and expanding carbon regulation is reshaping how buildings operate, invest, and plan for the future.

At Logical Buildings, we see several defining themes that will shape decision-making in the year ahead.

Electricity Affordability and Volatility

At both the national and local level, electricity affordability is becoming a central issue for buildings. After nearly two decades of flat electricity demand in the United States, we are now seeing a sharp and sustained increase in usage. This shift is being driven by the growth of AI data centers, electric vehicle charging, and the electrification of heating and hot water—largely through heat pumps and related technologies.

This represents a major paradigm change. While average electricity prices are rising, the more significant impact is the increase in peak electricity prices across many markets. For buildings, peak pricing volatility is quickly becoming one of the largest drivers of energy cost risk.

This pressure is already visible in wholesale markets: in PJM, the nation’s largest electricity market, recent capacity auction results show that projected data center load growth accounted for roughly 40% of total capacity costs, driving billions in system-wide price increases that ultimately flow through to building owners and tenants (Utility Dive).

The solution is not simply reducing usage—it is managing electricity more intelligently. Smarter electricity tracking and management across the board is essential: real-time data, better controls, rate optimization, fixed-priced purchasing, and participation in grid services (also known as demand response). These tools are critical not only for owners and managers who directly pay energy costs, but also for empowering residents and tenants to better manage electricity affordability.

SmartKit and GridRewards together represent a uniquely powerful solution to this problem set. By combining real-time building intelligence and grid services for building operators AND for residents, we can systematically drive down energy costs and carbon for all building stakeholders, holistically. We are increasingly leveraging AI to analyze energy usage patterns across thousands of buildings to prescribe the most effective operational and capital strategies to reduce energy costs.

Growing Carbon Regulation

Carbon remains a major driver of decision-making at the state, municipal, and stakeholder level. Buildings are now facing new and expanding energy and carbon regulations tied to data reporting and potential penalties—such as Local Law 97 in New York City, BERDO in Boston, BEPS in Maryland, and Energize Denver in Colorado.

Over the next several years, success in these compliance programs will depend on having the highest-quality energy and carbon data, along with a clear understanding of future penalty trajectories embedded in these laws. Carbon compliance is no longer a one-time exercise—it is now a multi-year planning challenge.

This theme directly intersects with electricity affordability. The long-term pathway to carbon reduction in buildings is increased electrification. Solving electricity affordability is therefore not only essential for controlling operating costs, but also for achieving durable and scalable carbon reductions.

Training for the Future of Energy and Carbon Management

Technology alone does not deliver results—people do.

A key focus for Logical Buildings in 2026 is training: building operators, resident managers, and property managers. While lowering energy costs today remains a priority, we are equally focused on preparing stakeholders for the future of energy and carbon management.

This includes a necessary shift in mindset—from simple payback analysis toward longer-term thinking that coordinates energy and carbon interventions. By evaluating projects across the lifecycle of existing building equipment, owners and managers can identify the lowest total-cost pathway to long-term carbon compliance.

Electron Economy Projects

Beyond traditional energy conservation measures, Logical Buildings is increasingly focused on designing and implementing Electron Economy projects—transformative initiatives that deliver outsized carbon reductions and result in increased electricity usage as a percent of total energy usage.

These projects include:

• Connectivity, smart thermostats, and advanced building automation systems

• Electrification of heating, heat recovery, and submetering

• Battery storage and solar

• Electric vehicle charging

Each of these investments introduces more electricity into the building—but more importantly, more flexible electricity. Flexibility is where economics are won or lost.

This is an area where Logical Buildings brings deep expertise. As a grid services provider and bulk purchaser of electricity on optimized rates, combined with our technology and engineering capabilities, we can materially improve project economics. In many cases, this improvement is significant enough to unlock projects that would otherwise not pencil.

Looking Ahead

2026 will favor buildings that are proactive, data-driven, and flexible. Electricity intelligence, carbon readiness, and workforce training are no longer separate initiatives—they are part of a single, integrated strategy.

Logical Buildings remains committed to helping owners and operators navigate this transition—turning rising complexity into opportunity, and ensuring that energy and carbon decisions made today create value for years to come.

If you’d like to learn more about how your building or facility can earn and save revenue, get in touch with our team!