In the United States, data center power usage has tripled over the last ten years, and this electricity demand is projected to increase by up to three times by 2028.
The expansion of data centers and the growth of artificial intelligence drive a significant surge in electricity demand. If this rising need for electricity is not met, it could lead to higher costs and a less reliable power supply, potentially hindering the growth of data centers and progress in AI development in the country.
After two decades of stagnation in grid investments, there is encouraging news: many grid operators and utilities in the United States plan to invest billions of dollars in power transmission lines and networks to accommodate the increasing electricity demand.
On December 12, 2024, the Midcontinent Independent System Operator (MISO), a nonprofit organization responsible for managing the electric grid and overseeing the wholesale electricity market across 15 U.S. states and parts of Canada, announced the most extensive grid expansion plan in U.S. history. The organization has approved 488 projects spanning 5,000 miles across these states.
The plan includes various types of projects: 459 local reliability projects ($6.7 billion), 24 Long Range Transmission Planning (LRTP) regional projects ($21.8 billion), and 5 Joint Targeted Interconnection Queue (JTIQ) projects in collaboration with the Southwest Power Pool ($1.6 billion).
These initiatives aim to enhance infrastructure, accommodate load growth, and enable new generation capacity, with potential benefits exceeding $72 billion. The total investment for the entire project exceeds $22 billion.
Canary Media reports that transmission advocates have focused in the last few years on the need to double or triple the size of the U.S. high-voltage transmission network to enable a massive expansion of wind and solar power.
Expanding the high-voltage transmission network is also critical, as areas of the country are experiencing rapid growth in data centers, semiconductors, and cleantech factories to meet the demand for grid capacity. Simply put, US economic growth won’t happen without improving the country’s power grid.
This push to improve and expand America’s grid has spurred a flurry of grid expansion in recent months; the most ambitious is MISO’s US$22 billion high-voltage transmission lines.
Other plans include Southwest Power Pool’s $7.7 billion in October, PJM’s $5.8 billion portfolio, and individual state projects like Texas’s $13 billion plan and California’s $13.4 billion in 2023-2024. Additionally, merchant transmission projects, such as the $3 billion TransWest Express and the $7 billion Grain Belt Express, are progressing.
However, despite these efforts, a 2023 report highlights that these estimated US$64 billion grid investments will only increase the US transmission capacity by 15%, indicating that further expansion is needed.
President Trump’s goals for a second term include achieving energy dominance and establishing the US as a global leader in artificial intelligence. Significant investments in electricity infrastructure will be essential to accomplish these ambitious objectives, particularly in developing a robust high-voltage grid to meet the increasing energy demands.
CNN reports that on 21 January 2025, three top tech firms CEOs – Sam Altman of OpenAI, Masayoshi Son of SoftBank, and Larry Ellison, Oracle Chairman, announced at the White House alongside President Donald Trump, to announce that they will create a new company, Stargate, a US$500 billion AI infrastructure project, the largest in history.
Trump said Stargate would build “the physical and virtual infrastructure to power the next generation of AI,” including data centers nationwide. Ellison said the group’s first, one-million-square-foot data project is already under construction in Texas.
This move will help the US achieve its goal of global AI dominance, given the technology’s impact on everything from the economy to the nation’s security.
“Infrastructure in the United States is super important, AI is a little bit different from other kinds of software in that it requires massive amounts of infrastructure, power, computer chips, data centers, and we need to build that here and we need to be able to have the best AI infrastructure in the world to be able to lead with the technology and the capabilities,” Altman said in the interview (Duffy, 2025).
AI leaders have emphasized that developing a new AI ecosystem, which depends on data centers and advanced computing systems, will necessitate a robust and reliable power infrastructure.
President Trump’s goal of utilizing America’s abundant energy and natural resources—including oil, natural gas, coal, hydropower, biofuels, critical minerals, and nuclear energy—will be crucial in meeting these energy demands and fostering the growth of AI and other technology-driven sectors.
Infrastructure Asset Management
Infrastructure Asset Management (IAM) supports the growth of the US Artificial Intelligence sector. It ensures that the physical and technological infrastructure necessary for AI development and deployment is well-maintained, efficient, and capable of adapting to future needs. As AI infrastructure expands, there will be increased demands for energy, data storage, computing power, and connectivity.
Through efficient asset inventory, AI data centers can monitor the physical condition of their assets, such as servers, storage systems, and cooling equipment. This management ensures that these assets are optimized for performance and longevity while tracking when upgrades or replacements are necessary.
Infrastructure Asset Management also helps develop resilience plans for AI infrastructure, implementing contingency strategies to address potential cyberattacks or physical disasters that could disrupt operations.
Conversely, AI can significantly enhance Infrastructure Asset Management practices. By analyzing vast datasets, AI technologies can reveal hidden patterns, predict potential issues, and optimize resources throughout various project phases.
Asset owners and managers can leverage AI to improve asset performance and maintenance by implementing AI-driven predictive maintenance systems and creating digital twins. This approach enhances asset performance, reduces downtime, and extends asset lifecycles.
Sources:
Kennedy, C. (2025, January 28). U.S. Grid Investments Jump as AI Leads Power Demand Surge. Oil Price. Retrieved from https://oilprice.com/Latest-Energy-News/World-News/US-Grid-Investments-Jump-as-AI-Leads-Power-Demand-Surge.html
MISO Board Approves Historic Transmission Plan to Strengthen Grid Reliability. (2024, December 12). MISO. Retrieved from https://www.misoenergy.org/meet-miso/media-center/2024/miso-board-approves-historic-transmission-plan-to-strengthen-grid-reliability/
St. John, J. (2025 January 9). Plans to expand the grid are finally underway. Will Trump drop the ball? Canary Media. Retrieved from https://www.canarymedia.com/articles/transmission/plans-to-expand-the-grid-are-finally-underway-will-trump-drop-the-ball
Edwards, C. (2025, January 29). With Stargate, will the US win the AI race? IISS. Retrieved from https://www.iiss.org/online-analysis/online-analysis/2025/01/with-stargate-will-the-us-win-the-ai-race/
Fact Sheet: President Donald J. Trump Takes Action to Enhance America’s AI Leadership. (2025, January 23). Retrieved from https://www.whitehouse.gov/fact-sheets/2025/01/fact-sheet-president-donald-j-trump-takes-action-to-enhance-americas-ai-leadership/
Unleashing American Energy. (2025, January 20). Retrieved from https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/
Duffy, C. (2025, January 21). Trump announces a $500 billion AI infrastructure investment in the US. CNN. Retrieved from https://edition.cnn.com/2025/01/21/tech/openai-oracle-softbank-trump-ai-investment/index.html
Lewis, C. (2024, September 9). How artificial intelligence can unlock a new future for infrastructure. EY. Retrieved from https://www.ey.com/en_gl/insights/infrastructure/how-artificial-intelligence-can-unlock-a-new-future-for-infrastructure
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