Energy Department announces grid upgrade plan

The Energy Department will spend almost two billion dollars on 31 projects across 26 states to increase electricity capacity as artificial intelligence data centers strain power supplies.

Projects will add 23 gigawatts of capacity

The upgrades are expected to produce more than 23 gigawatts of additional electricity capacity, enough to power 16 million homes. New sensors and devices will measure real-time weather to ensure safe transmission.

Benefits for 100 million Americans

The upgrades could improve power reliability and lower electricity costs for about 100 million Americans, according to Energy Department officials. Energy Secretary Chris Wright said the investments will help deliver affordable, reliable power.

“These investments will get more out of the infrastructure we already have, move more electricity across the grid, and help deliver affordable, reliable and secure power that will fuel American prosperity for decades to come.”

AI demand threatens to overwhelm supplies

The announcement comes as warnings indicate AI's power demand is threatening to overwhelm U.S. power supplies. Massive new data centers are coming online faster than new power plants can be built, and electricity bills rise faster than inflation.

Utilities resist efficiency improvements

Utilities have seen rising profits during the data center boom but tend to avoid efficiency upgrades because they make more money from building expensive new power plants and infrastructure projects that take longer to complete.

Trump backs data centers despite opposition

Trump continues to support data centers even as politicians from both parties and many communities criticize them. He said last month that U.S. communities without data centers will end up being backwards and poor.

“end up being backwards and poor”