US funds $1.9B in grid projects to ease datacenter power constraints
The Department of Energy is putting $1.9 billion in federal funds toward 31 grid projects, with another $3.35 billion in cost-share money. The projects will replace or rebuild more than 1,500 miles of transmission lines and add sensors and power-flow controls across 21,000 miles. The agency expects at least 23 gigawatts of new capacity and better reliability for roughly 100 million Americans.
The US Department of Energy is directing $1.9 billion in federal money toward 31 grid projects across 26 states, joined by $3.35 billion in cost-share funds. The effort falls under the SPARK initiative and the GRIP program. It focuses on rebuilding or reconductoring over 1,500 miles of transmission lines and adding sensors, power-flow controls, and analytics across 21,000 miles.
Officials expect at least 23 gigawatts of added capacity and reliability gains for about 100 million people. The announcement comes as datacenter demand strains grids; Moody's projected US datacenter electricity use could reach 426 TWh by 2030, nearly twice 2025 levels. Other investments include small modular reactors, geothermal, and nuclear recommissioning.
The funding may ease electricity bottlenecks for households, businesses, and datacenter operators in affected regions, potentially improving reliability and moderating cost pressures. Communities near upgraded lines could see construction activity and wildfire-resilience benefits, though local disruptions may occur. If capacity gains lag rising AI-driven demand, ratepayers and grid planners could still face tighter supply and higher prices.