The US Energy Department is committing $2 billion to upgrade the nation’s aging electricity grid as power demand grows, partly because of AI data centers.

AP reported that the programme will support 31 projects across 26 states and improve more than 21,000 miles of transmission lines.

AI increases pressure on the grid

The projects are expected to add more than 23 gigawatts of capacity. Federal funding will be matched by about $3.35 billion from participating utilities and state agencies.

Grid upgrades are becoming a major infrastructure issue as technology companies build energy-intensive data centers across the country.

Source: Associated Press and US Energy Department. Published September 2026.

Imran Siddiqui

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