Rapid growth in AI data center construction is pushing US electric utilities to rethink how they plan and build generation, according to a Bank of America analysis reported by Utility Dive. The surge in large computing loads is arriving faster than the multiyear timelines utilities typically use to add power plants and transmission.
Data center power demand is climbing steeply. US data center electricity draw is expected to rise from about 31 gigawatts in 2025 to 41 gigawatts in 2026, lifting data centers' share of peak summer demand from 4.1% to 5.3%. Over the second half of the decade, data centers could add roughly 125 gigawatts of load between 2026 and 2030, helping push overall US electricity demand growth toward a compound annual rate near 4%.
The scale of the increase is forcing utilities to accelerate procurement and reconsider fuel choices. Some are extending the lives of existing plants, fast-tracking natural gas capacity, and signing agreements for nuclear and renewable power to serve concentrated data center clusters. Grid operators warn that connecting large loads without matching generation and transmission could strain reliability and raise prices for other customers.
Regional pressure varies widely. Virginia and Texas host some of the largest concentrations of data center demand, with each state's data center load measured in multiple gigawatts. The analysis noted that regulators and utilities are increasingly requiring large computing customers to help fund the infrastructure their facilities require, a shift intended to protect residential ratepayers from bearing the full cost of the buildout.
Source: Utility Dive - https://www.utilitydive.com/news/ai-data-center-growth-utilities-generation-plans/825541/