Investor-owned utilities are adding large loads like AI data centers to the U.S. electric grid, potentially boosting peak demand by 20% in the next decade, according to Wood Mackenzie. Uncertainty surrounds the demand buildout and whether the market can handle the rapid load ramp-up.

The United States’ need for electricity is increasing due to data centers, industrial expansion, and electrification. Data centers alone could consume 9% of the country’s electricity generation by 2030. However, not all proposed data centers are expected to be built, according to experts.

Investor-owned utilities have over 17 GW of large loads under construction and have committed to another 99 GW, totaling 15.5% of current US peak demand. WoodMac predicts 147 GW of high-probability load by 2030, equal to 20% of US peak demand, with 60 GW expected to come online this decade.

WoodMac’s analysis shows a shift towards large load development in deregulated markets, with a significant portion of committed and advanced discussion capacity planned for these areas. This trend poses risks of inadequate future supply and price increases, prompting market interventions in Texas and PJM.

Read more at Yahoo Finance: Utilities could add 147 GW of new large loads, boosting peak demand 20%: WoodMac