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The Standards / Power & Grid02 / 08

POWER & GRID

Grid strain, blackout risk, ratepayer cost shifting

The Framework

What your community should assess, what controls exist, what policy tools are available, and how to verify compliance.

What to Measure

Peak load (MW), demand variability, backup generation capacity

Engineering Controls

On-site substations, energy storage, demand response systems

Policy Tools

Utility cost allocation agreements, minimum service contracts, load management requirements

Monitoring

Utility reporting, reliability metrics, capacity utilization

Example StandardDeveloper-funded interconnection and minimum 15-year service contract
Evidence
3 sources
Lawrence Berkeley National Laboratory / U.S. DOE

The 2024 LBNL report is the federal government’s most comprehensive assessment of data center electricity demand, commissioned by Congress under the Energy Act of 2020

  • U.S. data centers consumed 176 TWh in 2023, equal to 4.4% of all U.S. electricity — up from 58 TWh in 2014
  • By 2028, demand is projected to reach 325–580 TWh, representing 6.7%–12% of total U.S. electricity consumption
  • PJM Interconnection projects 32 GW of peak load growth from 2024 to 2030, with data centers accounting for 30 GW (94%) of that increase; its 2025 capacity auction fell 6,623 MW short of the reliability target, and capacity prices rose ninefold
LBNL 2024 Data Center Energy Usage Report (PDF)PJM 2025 Long-Term Load Forecast Report (PDF)
Georgia Public Service Commission

Georgia’s December 2025 IRP approval is the largest single utility expansion driven by data center demand in U.S. history

  • The Georgia PSC approved 9,885 MW of new generation capacity for Georgia Power — a roughly 50% increase over existing capacity — with approximately 90% of the new load driven by data centers
  • The construction cost is $16.3 billion, with total ratepayer cost estimated at $50–$60 billion over the life of the assets; roughly two-thirds of new capacity is natural gas
  • The PSC agreement projects ‘downward rate pressure’ of about $8.50/month for residential customers from 2029–2031, but consumer advocates note this does not guarantee actual rate decreases
Georgia PSC 2025 Data Center Fact Sheet (PDF)Georgia Recorder — Massive Power Grid Expansion
Michigan Public Service Commission

Michigan’s MPSC proceedings provide a real-time case study of a state grappling with data center load that could exceed existing grid capacity

  • DTE Energy reports 3 GW of data center capacity in advanced negotiations on top of the approved 1,383 MW Oracle/Stargate facility, while Consumers Energy is pursuing a 2.65 GW pipeline — against a statewide peak demand of roughly 18 GW
  • The single Oracle/Stargate data center would increase DTE’s system load by approximately 25%; transmission infrastructure for this one site is estimated at $500 million
  • The MPSC’s first-ever data center tariff (November 2025) requires minimum 15-year contracts, 80% capacity take-or-pay obligations, and exit fees — after analysis found a single 1 GW data center could raise residential rates 5%–10%
MPSC — DTE Data Center Contract ApprovalPlanet Detroit — Michigan Data Center Power Costs