Energy Department announces $2 billion for national power grid upgrades
The U.S. Energy Department is set to announce nearly $2 billion in federal funding for 31 power grid upgrade projects across 26 states to boost electricity capacity and reliability. This initiative aims to address the growing energy demand from artificial intelligence and data centers, which are contributing to grid strain and rising electricity costs. The move comes amid increasing national opposition to data center developments and efforts by some lawmakers to push for utility efficiency requirements.
The U.S. Energy Department is poised to announce a nearly $2 billion federal investment to upgrade the nation's aging and stressed power grid. The funding, part of the bipartisan infrastructure law enacted under then-President Joe Biden, will support 31 projects across 26 states, aiming to add over 23 gigawatts of electricity capacity and improve reliability for 100 million Americans. Energy Secretary Chris Wright is set to unveil the grant program in Allentown, Pennsylvania. This initiative aims to get more out of existing infrastructure and deliver affordable, reliable power.
The announcement comes amidst growing warnings that artificial intelligence's escalating power demands are straining U.S. electricity supplies, as new data centers outpace power plant construction. Rising electricity bills in some areas are also being linked to demand from data centers. The article highlights the "snowballing opposition" to data centers across the country, which is impacting the plans of major tech companies and influencing the political landscape.
While President Donald Trump has defended data centers, arguing that communities without them will become "backwards and poor," politicians from both parties have criticized them, and many communities are attempting to block their development. Congress and some states are advocating for regulators to mandate utilities adopt technologies for more efficient grids, though critics suggest utilities often prefer more lucrative new power plant constructions. Additionally, the Trump administration has actively supported data center development, pushing for connections to power infrastructure and even issuing a plan through its Environmental Protection Agency that would make it harder for the public to learn about and comment on proposed AI data centers.