DOE allocates nearly $1 billion to modernize U.S. power grid amid AI data-center surge

The Trump administration’s Department of Energy disclosed an additional $967 million for grid modernization, targeting aging infrastructure and rising power needs from AI data centers. The grant program will channel resources to states, territories and federally recognized tribes for projects such as emergency generators, diesel, propane, natural-gas and battery storage systems. Energy Secretary Chris Wright said the investment seeks to reduce electricity costs and bolster reliability for American families and businesses.

PJM Interconnection regulators have warned that data-center expansion could cause more than 13 days per year of supply shortfalls by 2030, with the sector accounting for roughly 94 % of projected peak-demand growth. The Federal Energy Regulatory Commission approved a registry to monitor large electricity users as demand outpaces new generation. Applications for the funds must be submitted by February 17 2027, covering fiscal years 2025 and 2026.