Energy Department will spend $2 billion to squeeze more electricity from aging power grid - ABC News
The Energy Department will allocate nearly $2 billion to 31 projects across 26 states to upgrade the nation's aging power grid, aiming to increase electricity capacity by 23 gigawatts. This initiative seeks to address skyrocketing energy demand, largely driven by the proliferation of artificial intelligence and new data centers. The investment is intended to improve power reliability and lower costs for millions of Americans.
The U.S. Energy Department announced a nearly $2 billion investment to upgrade the national power grid, with the goal of adding more than 23 gigawatts of electricity capacity across 31 projects in 26 states. Energy Secretary Chris Wright stated that these investments will enhance existing infrastructure, move more electricity, and provide affordable, reliable power, addressing a grid strained by surging demand, particularly from artificial intelligence and massive new data centers.
The announcement, detailed by the Associated Press prior to its public release in Allentown, Pennsylvania, comes amidst concerns that AI's power demands could overwhelm U.S. supplies, with data centers coming online faster than new power plants can be built. Rising electricity bills, partly attributed to data center demand, are also a national issue. Despite growing community opposition to data centers, former President Donald Trump has advocated for their development, arguing that communities without them will become "backwards and poor."
While utilities have reportedly profited from the data center-fueled energy boom, critics argue they prefer expensive new infrastructure projects over more efficient grid upgrades. Funding for these grants originates from the bipartisan infrastructure law enacted under President Joe Biden, with the federal $1.9 billion being matched by $3.35 billion from recipients. Separately, the Trump administration has previously aimed to bolster the energy sector and, through its Environmental Protection Agency, issued a plan to reduce public access to information and comment on proposed AI data centers.