Energy Department Will Spend $2 Billion to Squeeze More Electricity From Aging Power Grid
WASHINGTON — The Energy Department is set to announce it will spend almost $2 billion to try to squeeze more electricity out of the nation’s aging and stressed power grid, as President Donald Trump’s administration steps up efforts to avoid blackouts amid skyrocketing energy demand spurred by artificial intelligence .
TL;DR
- The Energy Department will allocate almost $2 billion to 31 projects in 26 states to increase the nation's power grid capacity.
- These projects aim to produce over 23 gigawatts of additional electricity, enough to power 16 million homes, using new technologies like sensors to monitor weather and manage power flow.
- The initiative seeks to improve power reliability and potentially lower electricity costs for about 100 million Americans, addressing concerns over blackouts caused by rising energy demand, particularly from AI data centers.
- Funding comes from the bipartisan infrastructure law, with the government providing $1.9 billion and recipients matching with $3.35 billion in cost-share funding.
- The announcement occurs amid warnings that AI's energy consumption is outpacing new power plant construction, leading to increased electricity bills and community opposition to data centers.