WASHINGTON (dpa-AFX) - As demand rises due to cloud infrastructure and artificial intelligence, PG&E Corp announced Monday that it will invest $73 billion through 2030 to upgrade California's electric grid.
Up to 10 gigawatts of additional data center load is anticipated over the course of the next ten years, and the plan is built to handle this.
AI data centers are among the grid's biggest consumers, potentially using as much electricity as a small city, according to the U.S. Energy Information Administration, which predicts that power consumption will reach record highs in 2025 and 2026.
By 2030, California's grid operator anticipates a 15 percent increase in peak demand, placing additional strain on a system already beset by wildfire hazards and intermittent renewable energy.
After years of criticism for its involvement in the deadliest wildfires in California, PG&E has promised to construct 700 miles of underground lines and finish 500 miles of wildfire safety improvements by 2026. The utility also mentioned that SB 254, a new law, will reduce its portion of the state's wildfire liability fund.
The multibillion-dollar initiative highlights how AI has evolved from a specialized task to a major contributor to electricity consumption in the United States, and utilities are scrambling to keep up.
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