Key cybersecurity challenges—and solutions—for energy companies

Energy companies are operating in an environment defined by infrastructure expansion, an evolving energy mix and growing reliance on digital systems. While higher margins in parts of the industry may support investment, cybersecurity risk continues to rise as technology becomes more central to operations.

Addressing cyber vulnerabilities is much more than a risk issue; it’s also a competitive imperative, given that 81% of middle market organizations surveyed across all industries plan to increase their cybersecurity budget this year, according to the RSM US Middle Market Business Index Special Report: Cybersecurity 2026.

Here are three of the most prominent factors that shape the cybersecurity landscape for energy companies:

1. Connectivity, data and AI adoption

Across oil and gas, power and utilities, and renewables, companies are adopting advanced analytics and artificial intelligence to improve efficiency, forecasting and decision making. These initiatives require increasing data and connectivity across distributed assets, increasing the opportunities for an attacker to move more easily across different networks.

As digital connectivity expands and companies adopt more cloud-based technologies or look toward zero-trust solutions, identity and access management becomes critical. When systems span cloud platforms, third parties, mobile devices and remote infrastructure, companies need to go beyond traditional, perimeter-based security approaches. Comprehensive digital identity and access management approaches can help companies better protect themselves.

2. Grid expansion and operational risk

In the power and utilities sector, the need to expand grid capacity to meet growing demand has accelerated investment in smarter grid-enhancing technologies. These tools can improve reliability and efficiency, but they also introduce new cyber dependencies.

“Technology is inherently part of the solution to do more with less, but companies need to build security into those new technologies,” says David Carter, a director and industrials senior analyst at RSM US LLP.

When using virtual power plants, dynamic line rating systems and intelligent distributed energy resource management systems, for instance, energy companies must balance speed of deployment with resilience, particularly when modernizing legacy systems that were not designed for today’s threat landscape.

3. Smaller assets, broader exposure

Cybersecurity resilience is also important for smaller generating assets, including battery storage, solar, wind, hydro, geothermal and others. While individually smaller, these resources collectively represent a significant portion of the grid.

“There’s recognition about the criticality and the exposure of the U.S. grid to high volumes of smaller generating resources, and the importance of building security around those,” Carter says. Protecting these distributed resources helps ensure the stability and reliability of the broader energy ecosystem.

How energy companies can address these challenges

Energy companies can strengthen their cybersecurity posture by aligning security investments with modernization efforts and focusing on systemic risk.

Key actions include:

As energy systems become more interconnected, cybersecurity will be increasingly central to operational resilience, public trust and long-term infrastructure stability. Working with a third-party advisor on the actions above can help energy companies manage risk and boost their cybersecurity resilience.