Pacific Gas and Electric Company (PG&E) has announced that it is preparing to meet 10 gigawatts (GW) of new electricity demand from data center projects over the next decade. This figure represents an increase from 8.7 GW reported in May and 5.5 GW reported in February, based on applications from across PG&E’s service area.
According to PG&E, the projected demand could provide enough energy to power about 7.5 million homes at once. The company said this growth can help lower costs for all electric customers while generating jobs and revenue in local communities.
“Data centers are powering more than just the digital world—they’re helping power California’s future and PG&E is proud to lead the way in meeting growing demand for data centers,” said Mike Medeiros, Vice President, South Bay Delivery, PG&E. “This growth can help lower costs for all electric customers while creating tens of thousands of jobs and billions in local revenue.”
Of the anticipated 10 GW load growth, seventeen data center projects totaling approximately 1.5 GW are currently in final engineering phases and are expected to begin operations between 2026 and 2030. These projects are mainly located in San Jose, Silicon Valley, the greater San Francisco Bay Area, as well as some sites in the Central Valley and Sacramento.
PG&E stated that every additional gigawatt of new electric demand from data centers could result in a long-term monthly bill reduction of one to two percent for its customers. The utility also noted that its grid is currently utilized at an average rate of 45 percent; higher utilization allows fixed costs to be distributed over more units of energy.
To address rising requests for large-load interconnections—not only from data centers but also warehouses, electric vehicle fleets, and manufacturers—the California Public Utilities Commission (CPUC) approved PG&E’s interim implementation of Electric Rule 30. This rule offers a streamlined process for applicants who fund transmission infrastructure upfront to receive faster grid connections.
“Our large-load customers have asked for the ability to fund their projects upfront, which helps us serve them faster,” Medeiros said. “We greatly appreciate the Commission’s decision to implement an interim approach while the permanent process is finalized. This is a great step forward and solid recognition of the importance of Rule 30.”
PG&E serves more than sixteen million people across Northern and Central California through its combined natural gas and electric utility network spanning about 70,000 square miles.
More information can be found at https://www.prnewswire.com/news-releases/pge-data-center-demand-pipeline-swells-to-10-gigawatts-with-potential-to-unlock-billions-in-benefits-for-california-302518859.html
