grid infrastructure expansion for data centers

Overview

Power grid capacity has emerged as the primary constraint on U.S. data center development. In response, utilities and states are launching unprecedented infrastructure expansion programs, with $25B+ in grid upgrades announced in 2025 alone specifically for data center loads.

This page tracks major grid expansion programs, their timelines, and impact on data center siting decisions.

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Georgia Power $16B Grid Expansion

Program Overview

Approval Date: December 19, 2025 Total Investment: $16.0 billion Timeline: 2026-2030 phased deployment Significance: Largest state-level grid expansion for data centers in U.S. history

Transmission Infrastructure

High-Voltage Network Expansion:

• 500kV Lines: 1,200 circuit miles
• Major Corridors:
  • Atlanta Metro to Douglas County (Project Bunkhouse corridor)
  • Coastal Georgia reinforcement (Project Sail area)
  • North Georgia industrial zone upgrade

Substations: 15 new 500kV/230kV substations

Interconnection Points: 8 designated data center interconnection zones

Generation Assets

New Natural Gas Plants (3.5 GW total):

1. McDonough Combined Cycle Plant

   • Capacity: 1,200 MW
   • Location: Henry County
   • Operational: Q4 2027
   • Technology: GE H-class turbines
   • Dedicated: 800 MW for data centers

2. Coastal Georgia Energy Hub

   • Capacity: 1,500 MW
   • Location: Camden County
   • Operational: Q2 2028
   • Purpose: Coastal data center cluster

3. North Metro Peaker Station

   • Capacity: 800 MW
   • Location: Cherokee County
   • Operational: Q1 2029
   • Type: Fast-response peakers

Enabled Data Center Projects

Directly Enabled ($52B confirmed):

• Project Bunkhouse (Digital Realty) - $19B, 1 GW

  • Grid connection: McDonough plant
  • Timeline: FID expected Q1 2026

• Project Sail (Atlas Development/Prologis) - $17B, 1.2 GW

  • Grid connection: Coastal Georgia hub
  • Timeline: Permitting advancement

• T5 Georgia Campus - $16B, 500 MW

  • Grid connection: North Metro station
  • Timeline: Under regulatory review

Contingent Projects ($31B additional):

• Multiple sites in site selection pending grid availability

Total Georgia Pipeline Impact: $83B+ in projects now viable

Regulatory Framework

Georgia Public Service Commission Approval Process:

• Petition Filed: September 2025
• Public Hearings: October-November 2025
• Final Approval: December 19, 2025
• Rate Impact: +3.2% residential (2026-2030 average)

Cost Recovery Mechanism:

• Data center customers: 65% of costs (via special tariffs)
• Residential/commercial: 25% (system benefits)
• Industrial: 10%

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Louisiana Entergy Infrastructure Program

Program Overview

Total Investment: $4.5 billion Primary Driver: Meta Hyperion Campus ($10B, 2 GW) Timeline: 2025-2027

St. Charles Gas Plant

Location: St. Charles Parish, Louisiana Technology: Siemens HL-class combined cycle Efficiency: 63% heat rate Dedicated Load: Meta Hyperion Phase 1 (500 MW)

Key Features:

• Direct fiber interconnect to Meta campus
• Battery storage co-location (200 MWh)
• Carbon capture ready (post-2030)

Enabled Projects

Meta Richland Parish (Hyperion Campus):

• Investment: $10B
• Capacity: 2 GW planned, 500 MW Phase 1
• Grid Connection: St. Charles + Ascension plants
• Status: Under construction

Hut 8 River Bend Expansion:

• Additional capacity: 400 MW
• Dependent on Jefferson peaker completion
• Status: Planned for 2027

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Texas ERCOT Grid Preparedness

Overview

Texas Electric Reliability Council (ERCOT) has 70 GW of data center interconnection requests in queue as of December 2025—more than any other grid operator globally.

Response Strategy: Market-driven generation additions

Market Mechanism

ERCOT Data Center Tariff:

• Interruptible load programs
• Real-time pricing exposure
• Demand response participation required for >100 MW loads

Generation Response:

• 45 GW of new natural gas approved 2024-2026
• 12 GW of utility-scale solar with storage
• Merchant power plants financing based on data center PPAs

Major Projects Under Development

Texas Grid-Connected Mega-Projects ($65B total):

1. Stargate Abilene (Oracle/Crusoe) - $40B, operational

   • Direct interconnect with on-site generation
   • ERCOT backup only

2. Vantage Frontier Campus - $25B

   • Mixed grid + on-site generation model
   • 800 MW Phase 1 from ERCOT

Grid Constraint Areas:

• Dallas-Fort Worth: Limited availability
• Austin: Moderate constraints
• Houston: Good availability
• West Texas: Abundant wind-backed capacity

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Virginia Dominion Energy Transmission

Overview

Investment: $11.5B (2020-2025) Context: Existing data center capital of U.S. Status: Approaching saturation in Loudoun County

Expansion Plans

Western Virginia Transmission Corridor ($3.2B):

• 500kV line from Louisa County to Roanoke
• Operational: 2028
• Capacity: 2.5 GW data center load
• Rationale: Shift growth from saturated Northern Virginia

Recent Approvals:

• EdgeCore Louisa County: $17B (enabled by 2024 transmission)
• AWS Louisa Campus 1: $11B (connected Q3 2025)

Constraint Response:

• New projects directed to Louisa, Culpeper, Botetourt counties
• Loudoun moratorium discussions ongoing

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Pennsylvania PJM Interconnection

Overview

Pennsylvania sits within PJM Interconnection, the largest regional transmission organization in North America, with $90B+ in Pennsylvania data center projects depending on PJM transmission improvements.

PJM Data Center Queue: 38 GW in Pennsylvania alone

Transmission Constraints

Problem: PJM’s interconnection queue processing is 3-5 years for large loads

Pennsylvania-Specific Challenges:

• Western PA: Limited transmission from coal plant retirements
• Eastern PA: Constrained New Jersey interconnections
• Central PA: Good availability near nuclear plants

Nuclear Advantage

Pennsylvania Nuclear Fleet (5 active plants, 9.5 GW):

• Susquehanna (2.5 GW) - proximity to multiple data center sites
• Limerick (2.3 GW) - near Philadelphia
• Beaver Valley (2.1 GW) - near Pittsburgh
• Peach Bottom (2.3 GW) - southern PA

Data Center Strategy: Site near nuclear for grid reliability

Examples:

• Homer City Energy Campus: 4.5 GW potential near Susquehanna
• Gouldsboro Data Center: $14.5B, proximity to nuclear grid

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Iowa MidAmerican Energy Nuclear Revival

Duane Arnold Restart Feasibility

Plant: Duane Arnold Energy Center Status: Shutdown 2020, restart study initiated 2025 Capacity: 615 MW Investment Required: $1.2B restart costs

Data Center Driver:

• Google Iowa: $7B committed
• QTS Cedar Rapids: $10B campus
• Microsoft West Des Moines: Ongoing expansions

Combined Data Center Load: 2+ GW by 2030

Restart Timeline:

• Feasibility Study: 2025-2026
• NRC Review: 2026-2028
• Potential Operational: 2029

Economics:

• PPAs with Google, Microsoft, QTS would fund restart
• 25-year power agreements under negotiation

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North Carolina Duke Energy Program

Overview

Investment: $6.8B (2024-2028) Driver: Research Triangle data center cluster

Major Components:

• 1,200 MW natural gas (Asheville plant expansion)
• 800 MW utility-scale solar + storage
• Transmission reinforcement to Richmond, Durham counties

Enabled Projects

AWS Richmond County ($10B):

• Groundbreaking: October 31, 2025
• Grid connection: New Duke transmission
• Capacity: 650 MW Phase 1

Energy Storage Solutions AI Campus ($19.2B):

• Unique model: Battery storage integrated
• Grid stabilization benefit to Duke
• Duke co-investment in storage component

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Arizona Public Service (APS) Expansion

Overview

Investment: $5.5B (2025-2029) Focus: Greater Phoenix data center corridor

Generation Additions:

• 2.2 GW natural gas (West Phoenix plant)
• 1.5 GW solar (with 500 MW storage)
• Palo Verde Nuclear coordination (existing capacity utilization)

Hassayampa Ranch Coordination

Hassayampa Ranch Data Center ($25B, 1.5 GW):

• Announced November 2025
• Coordination with APS for 800 MW grid connection
• Remaining 700 MW: On-site generation planned

Google Redhawk Phase 2:

• Expansion to 400 MW (from current 280 MW)
• APS providing additional 120 MW
• Solar + storage dedicated resource

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Emerging State Programs

Ohio AEP Transmission

• Investment: $4.2B
• Timeline: 2026-2030
• Focus: Columbus-Dayton corridor

Illinois ComEd Northern Grid

• Investment: $3.8B
• Timeline: 2025-2028
• Focus: Former Sears HQ site, Hoffman Estates

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Grid Expansion Success Factors

Winning Models

Georgia Power Approach - Industry gold standard:

1. Comprehensive Planning: 5-year program with clear milestones
2. Cost Allocation: Data centers pay majority via special tariffs
3. Integrated Generation: Transmission + generation planned together
4. Regulatory Pre-Approval: PSC approval before projects commit

Contrasts with Failed Approaches:

• Reactive (vs. proactive planning)
• Project-by-project (vs. system-wide)
• Transmission-only (vs. generation + transmission)

Critical Path Items

For successful grid expansion programs:

1. 3-5 year planning horizon minimum
2. Clear cost recovery mechanism
3. Generation and transmission coordinated
4. Regulatory support from state commission
5. Environmental permitting pathway identified

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Investment Trends

Total U.S. Grid Investment for Data Centers (2024-2030)

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Impact on Site Selection

Grid Availability Now Primary Factor

2025 Site Selection Rankings (by data center developers):

1. Power Grid Availability (95% cite as critical)
2. Fiber connectivity (88%)
3. Skilled workforce (82%)
4. Tax incentives (78%)
5. Water availability (75%)

Shift from 2023: Grid rose from #3 to #1

States Winning Due to Grid Preparedness

Tier 1: Proactive Grid Expansion

• Georgia (post-December 2025 approval)
• Arizona
• Texas (ERCOT capacity)

Tier 2: Moderate Grid Investment

• North Carolina
• Louisiana
• Virginia (Western expansion)

Tier 3: Reactive/Constrained

• Maryland (limited expansion plans)
• Colorado (regulatory constraints)
• Wisconsin (utility hesitancy post-cancellations)

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Forward Outlook

2026-2030 Grid Investment Forecast

Projected Total: $80-100B in data center-driven grid expansion

Key Uncertainties:

1. Rate Impact: Can utilities maintain regulator support with 3-5% residential rate increases?
2. Timeline Risk: Can transmission projects complete in 3-4 years (vs. historical 5-7)?
3. Generation Technology: Will SMRs become viable alternative to natural gas?

Watch List

States Likely to Announce Major Programs in 2026:

• South Carolina: Santee Cooper study underway
• Tennessee: TVA data center tariff redesign
• Nevada: NV Energy northern corridor expansion

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Related Pages

• Power Infrastructure
• Nuclear Partnerships
• Q4 2025 Industry Update
• Power Grid Risks

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Last Updated: December 30, 2025 Data Sources: Utility commission filings, state regulatory documents, utility investor relations