Electricity demand in the United States is set to grow five times faster than previously forecasted, with a projected 15% increase by 2029, according to a new report by Grid Strategies LLC. The report, Strategic Industries Surging: Driving U.S. Power Demand, attributes the rapid rise to the expansion of data centers, semiconductor manufacturing, and battery production.

The report predicts national electricity load will climb to 947 gigawatts (GW) by 2029, with peak demand growing at an annual rate of 3%. Rob Gramlich, president of Grid Strategies, emphasized the widespread impact of this growth on utility planning, transmission, and resource adequacy.

Regions such as ERCOT, PJM, and Georgia Power lead the surge, driven by data center development in Dallas, Northern Virginia, and Atlanta. Meanwhile, electrification is expected to play a larger role in the 2030s.

The report highlights the need for substantial investment in electric power infrastructure to sustain economic growth. Increasing interregional transmission capacity, a cost-effective solution, is key to meeting the demand while minimizing costs. However, the report warns of regulatory hurdles and long development timelines for such projects.

Failure to address these challenges, the authors caution, could undermine America's leadership in advanced manufacturing and artificial intelligence.

Source: Grid Strategies LLC