Fedswill spend $2 billion to squeeze more electricity from the aging power grid
By Associated Press Editors, September 24,2026
ALLENTOWN, Pa. (AP) — The Energy Department announced on Thursday that it will spend almost $2 billion to try to squeeze more electricity out of the nation’s aging and stressed power grid, as President Donald Trump’s administration steps up efforts to avoid blackouts amid skyrocketing energy demand spurred by artificial intelligence.
The money will go toward 31 projects across 26 states that are expected to produce more than 23 gigawatts of additional electricity capacity — enough to power 16 million homes. The projects will use new technologies such as sensors and other devices to measure real-time weather conditions to ensure safe transmission or direct power away from congested or overloaded paths, the department said.
The upgrades could improve power reliability and lower electricity costs for about 100 million Americans, officials said.
“These investments will get more out of the infrastructure we already have, move more electricity across the grid, and help deliver affordable, reliable and secure power that will fuel American prosperity for decades to come,” Energy Secretary Chris Wright said in a statement.
Wright was set to promote the grant program Thursday at a PPL Corp. facility in Allentown. The utility says two data centers in its territory came online this year and six more are under construction.
The announcement comes amid warnings that AI’s voracious demand for power is threatening to overwhelm U.S. power supplies, as massive new data centers come online faster than new power plants can be built. It also comes as electricity bills rise faster than inflation in many parts of the U.S., blamed in some areas on demand from data centers.
The snowballing opposition to data centers in communities across the country has thrown a wrench into the plans of the world’s richest companies and transformed the midterm election landscape.
Trump continues to stick up for data centers, even as politicians from both major political parties criticize them and many communities try to block them. Trump, a Republican, said last month that U.S. communities that don’t have data centers will “end up being backwards and poor.”
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