Overview
- In early September 2026, analysts and reporting say projected AI-driven load growth is large enough to strain regional grids and is already prompting delayed or provisional connections for many planned data centers.
- Federal and lab forecasts show U.S. data center electricity use could double or triple by 2028 and reach roughly 10–12% of national power consumption by the end of the decade.
- More than half of current data center power comes from fossil fuels, with natural gas the largest source, and many forecasts expect gas to grow as the fastest way to meet near-term demand.
- State actions are increasing: Virginia began a 1.1¢/kWh tax for data centers on July 1, 2026, and lawmakers and regulators in Ohio, Colorado and Oregon are weighing new tariffs, zoning rules and classifications to protect ratepayers.
- Investors and some developers are funding physical-layer fixes — from modular edge designs to carbon capture and targeted transmission upgrades — and companies could speed clean-energy deployment if they pair builds with long-term clean power and grid investments.