The Department of Energy is asking state energy officials and a range of businesses for help in determining how to use federal grants and loans to boost the grid to accommodate big increases in future electricity demand.
The request comes amid a Trump administration blitz to permit power-hungry artificial intelligence projects in the United States. It also follows Republican cuts to grant and loan programs for the grid in the One Big Beautiful Bill Act.
“Large-scale electricity demand growth is occurring at a pace and scale that presents significant challenges to the U.S. electric grid,” the DOE notice released Wednesday said. “This growth has exposed gaps in existing infrastructure, including limited transmission capacity, grid congestion, aging grid infrastructure, and delays in interconnection processes for both load and new generation.”
AI data center projects are in various stages of development throughout the country, signaling a spike in electricity demand not seen in the U.S. in decades. DOE’s notice also points to new demand from manufacturing facilities and semiconductor fabrication plants. Meanwhile, more adoption of electric vehicles and home electrification are boosting demand.
