Lobbyist Says US Needs to Adapt to Data Center Demand
Energy lobbyist Gary Rahl said at a Georgetown University event that the U.S. electric grid and regulatory systems are not prepared for the rapid growth of AI data centers. He called for changes to utility incentives, infrastructure planning and coordination between regulators and private companies.
Gary Rahl, an energy lobbyist, told a Georgetown University audience that rising electricity demand from AI data centers is exposing weaknesses in the nation’s aging grid and slow-moving regulatory systems. He said utilities, manufacturers and regulators are not equipped to respond to rapid demand growth, while state rules can limit technology companies’ ability to build dedicated power plants.
Rahl argued that policymakers must better coordinate electricity generation, transmission and distribution and update incentives that favor new construction over efficiency and grid modernization. The U.S. Energy Information Administration expects power consumption to reach record levels in 2026 and 2027, while a 2025 Department of Energy report projected a substantial gap between available generation and peak demand by 2030.