
Energy Department will spend $2 billion to squeeze more electricity from aging power grid
The U.S. Department of Energy announced a nearly $2 billion investment in grid upgrades across 26 states to boost electricity capacity and reliability. This initiative comes amid warnings that the surging power demands of AI and new data centers are straining the nation's aging power grid. The projects aim to improve infrastructure and efficiency, addressing concerns about potential blackouts and rising electricity costs.
The U.S. Department of Energy announced a $1.9 billion investment in 31 projects across 26 states, aimed at enhancing the nation's aging power grid to prevent blackouts amid skyrocketing energy demand from artificial intelligence. The funding, matched by $3.35 billion from recipients, will upgrade over 1,500 miles of transmission lines and 21,000 miles of technological enhancements, generating 23 gigawatts of additional electricity capacity. Energy Secretary Chris Wright highlighted that these investments will improve power reliability and lower costs for about 100 million Americans.
The announcement was made at a PPL Corp. facility in Allentown, Pennsylvania, a utility that noted two data centers in its territory came online this year, with six more under construction. The initiative underscores growing concerns that new data centers are being built faster than new power plants, leading to a potential overwhelming of U.S. power supplies and contributing to rising electricity bills.
While President Donald Trump has advocated for data centers, there's growing bipartisan criticism and "snowballing opposition" in communities attempting to block their development. The article also mentions efforts by Congress and states to push regulators to mandate utilities use more efficient grid technologies. The EPA, under Trump's administration, also issued a plan to make public comment on proposed AI data centers more difficult.