As the digital world keeps expanding, data centers are becoming one of the fastest growing areas of global infrastructure. Data centers are expanding quickly across the country to support cloud services and the current AI boom, and their electricity needs are affecting planning in the utility industry. Pew Research Center reports that U.S. data centers consumed more than 4% of national electricity in 2024, with demand projected to more than double by 2030.
For those working in the utility industry, planning for this rapid growth is essential. Several studies point to a substantial change in electricity demand after years of relative steadiness. Large AI optimized facilities can draw as much power annually as one hundred thousand households, and larger projects are on the horizon (Pew Research Center, 2025). Even large grids can feel impacts where data centers account for significant usage of the electricity supply.
At the utility level, the scale and pace of interconnection requests to join the electric grid are unprecedented. EESI finds that dozens of utilities received data center interconnection requests totaling at least 700 GW in 2025, exceeding total U.S. electricity consumption in 2023, and that many utilities have later pursued large capital programs for generation, transmission, and transformers (Environmental and Energy Study Institute, 2026).
Regulators are paying close attention to how data centers affect electricity costs for everyday customers. Some states are considering special rate categories and updated rules to make sure these large facilities cover more of the costs tied directly to their energy use so that they do not pass down to these customers (State Energy & Environmental Impact Center, 2025). As critics of data centers emphasize, potential cost increases must be addressed now, during the planning phases, rather than later.
At the federal level, these growing power needs are seen as both a challenge and an opportunity. The U.S. Department of Energy says data centers, especially those supporting AI, are becoming essential to the country’s economic growth (U.S. Department of Energy, 2025). To handle the rising demand, the Department of Energy promotes a mix of solutions, including more solar and wind power, greater use of battery storage, improved energy efficiency, and expanded nuclear and hydropower options. The DOE also highlights funding programs and tools that can help utilities upgrade the grid, improve reliability, and integrate cleaner energy sources over the coming years as they emphasize the importance of the overall data center growth (U.S. Department of Energy, 2025).
For utilities and communities, the main takeaway is that growth in data center power needs will continue both short-term and long-term and must be planned for. Grid upgrades are important, and with the right investments, data center growth can also help drive long term improvements to the country’s infrastructure and workforce (Pew Research Center, 2025; U.S. Department of Energy, 2025).
Manufacturers and distributors in the utility industry could experience an uptick in demand as utilities plan and implement system upgrades and modernization projects. More frequency and larger-scale capital projects means increased orders for equipment, materials, and specialized components translating into longer lead times and potentially higher costs. As utilities push to meet regulatory changes and customer needs, suppliers and distributors become essential partners. Ultimately, data centers are and will continue to be a central component of economic growth and workforce development for years to come.
As data center growth continues, utilities will need reliable partners who understand the evolving demands on the grid. With decades of experience supporting utilities through infrastructure upgrades, Gresco is ready to assist customers navigate the challenges and opportunities ahead. For more information on how we can assist you, please contact your Gresco representative or visit us on Gresco.com.