The U.S. Department of Energy is preparing to invest nearly $1.9 billion in 31 projects across 26 states aimed at increasing the capacity and reliability of the nation’s aging power grid as electricity demand surges, particularly from data centers, Fortune reports.
The projects are expected to add more than 23 gigawatts of electricity capacity, enough to power about 16 million homes, by using technologies such as real-time weather sensors and advanced controls to move electricity away from congested transmission routes. The upgrades are projected to improve reliability and potentially reduce electricity costs for roughly 100 million Americans, while enhancing more than 1,500 miles of transmission lines and deploying technology across nearly 21,000 miles of the grid.
The federal funding, provided through the bipartisan infrastructure law, will be matched by $3.35 billion from project recipients, with projects prioritized for rapid deployment. The initiative comes as utilities and policymakers face growing pressure to accommodate data center development without relying solely on costly new power plants and transmission infrastructure.
Critics argue utilities have limited incentives to pursue efficiency improvements because larger infrastructure projects can generate greater returns. At the same time, rising electricity bills and concerns over the strain of data centers have fueled opposition in communities across the country.
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