Missouri power grid faces costly upgrades as AI data centers drive electricity demand
A federal study says Missouri and other states will need major transmission upgrades as electricity demand rises, driven partly by the expansion of AI data centers. Missouri officials and consumer advocates are concerned that infrastructure costs could be passed on to residential utility customers, while federal officials say data center operators should pay their share.
A U.S. Department of Energy transmission study estimates that about 4,000 miles of power lines will need to be replaced annually for several decades, with nationwide electricity consumption projected to rise 16% to 25% by 2034. The report identifies the rapid growth of AI data centers as a major contributor to rising demand and says significant transmission investment will be needed through 2050.
During a visit to Jefferson City, DOE Assistant Secretary Katie Jereza said forthcoming AI data centers should finance infrastructure upgrades tied to their power needs. Geoff Marke, chief economist for the Missouri Office of Public Counsel, warned that inadequate cost allocation could shift the expense to residential ratepayers. Ameren, Evergy and other transmission utilities are seeking federal approval to receive rights of first refusal for new multistate power lines, while Marke argued that competitive bidding could help control costs.