U.S. electricity demand is surging at a pace not seen in decades, driven largely by the explosive growth of data centers and expanding industrial electricity use. According to the Energy Information Administration, demand grew at an average of 1.7 percent annually from 2020 to 2025. This is a dramatic acceleration from the near-flat growth rate of 0.1 percent per year seen between 2005 and 2019. The sharpest increases are concentrated in Texas, where the ERCOT grid is projected to see demand grow 10 percent a year through 2027, and across the PJM system covering 13 states and the District of Columbia, where demand is rising at 3 percent annually.

To help meet that demand, the Department of Energy announced a $1.9 billion funding opportunity for grid modernization projects, drawing on the Grid Resilience and Innovation Partnerships program established under the 2021 bipartisan infrastructure law. The department said it is prioritizing advanced conductors, new transmission technologies, and large-scale cross-regional transmission upgrades.