The Energy Department to spend nearly $2 billion to squeeze more power from the aging U.S. grid

The U.S. Energy Department plans to allocate nearly $2 billion to enhance the country's aging power grid, aiming to increase electricity capacity by more than 23 gigawatts. This will be achieved through 31 projects spread across 26 states, utilizing advanced technologies like sensors and devices to measure real-time weather conditions and optimize power transmission.

These improvements could boost power reliability and reduce electricity costs for around 100 million Americans, according to officials. Energy Secretary Chris Wright emphasized that these investments will maximize the use of existing infrastructure, optimize electricity flow, and ensure affordable, reliable, and secure power for decades.

The grant program was set to be announced in Allentown, Pennsylvania, as the administration grapples with concerns over AI's increasing energy demands, which are threatening power supplies and driving up electricity bills. The announcement comes as data centers proliferate faster than new power plants can be built, causing opposition in some communities and impacting election landscapes.

Despite backlash, Trump supports data centers, arguing that their absence would hinder economic growth. Congress and states are pushing for more efficient grid technologies to accommodate new customers without additional power sources. The funding for these grants comes from the bipartisan infrastructure law and will be matched by recipients' cost-share contributions.