Surging Data Center Growth to Help Lower Energy Costs for PG&E Customers
PG&E (PCG) reports a significant surge in data center electricity demand, projecting 8.7 gigawatts (GW) of power needs over the next decade, up from 5.5 GW in late 2024. The utility is currently managing 18 new data center projects totaling 1.4 GW in the final engineering phase, scheduled for operation between 2026-2030. Additionally, 21 new project applications totaling 4.1 GW are under review.
A key benefit for customers: every 1 GW of new data center demand could reduce monthly electric bills by 1-2%. Projects are primarily located in Silicon Valley and the Bay Area, with some in the Central Valley and Sacramento. PG&E is conducting a comprehensive study across its 70,000-square-mile service area and partnering with Westbank on a net-zero community project in San Jose.
PG&E (PCG) segnala un notevole aumento della domanda di energia elettrica per i data center, prevedendo 8,7 gigawatt (GW) di fabbisogno energetico nel prossimo decennio, rispetto ai 5,5 GW stimati a fine 2024. L'azienda sta attualmente gestendo 18 nuovi progetti di data center per un totale di 1,4 GW nella fase finale di ingegneria, con entrata in funzione prevista tra il 2026 e il 2030. Inoltre, sono in fase di valutazione 21 nuove domande di progetto per un totale di 4,1 GW.
Un vantaggio importante per i clienti: ogni 1 GW di nuova domanda per data center potrebbe ridurre le bollette elettriche mensili di circa 1-2%. I progetti sono principalmente localizzati nella Silicon Valley e nell'area della Baia, con alcuni situati nella Central Valley e a Sacramento. PG&E sta conducendo uno studio approfondito su un'area di servizio di 70.000 miglia quadrate e collabora con Westbank a un progetto di comunità a emissioni zero a San Jose.
PG&E (PCG) informa de un aumento significativo en la demanda de electricidad para centros de datos, proyectando 8,7 gigavatios (GW) de necesidad energética en la próxima década, frente a los 5,5 GW a finales de 2024. La compañía está gestionando actualmente 18 nuevos proyectos de centros de datos que suman 1,4 GW en la fase final de ingeniería, con operación prevista entre 2026 y 2030. Además, se están revisando 21 nuevas solicitudes de proyectos que suman 4,1 GW.
Un beneficio clave para los clientes: cada 1 GW de nueva demanda de centros de datos podría reducir las facturas eléctricas mensuales en un 1-2%. Los proyectos se encuentran principalmente en Silicon Valley y el Área de la Bahía, con algunos en el Valle Central y Sacramento. PG&E está realizando un estudio exhaustivo en su área de servicio de 70,000 millas cuadradas y colabora con Westbank en un proyecto comunitario de carbono neutral en San José.
PG&E (PCG)는 데이터 센터 전력 수요가 크게 증가할 것으로 보고하며, 향후 10년간 8.7기가와트(GW)의 전력 수요를 예상하고 있습니다. 이는 2024년 말의 5.5GW에서 증가한 수치입니다. 현재 이 회사는 총 1.4GW 규모의 18개 신규 데이터 센터 프로젝트를 최종 엔지니어링 단계에서 관리 중이며, 2026년부터 2030년 사이에 가동될 예정입니다. 또한, 21개의 신규 프로젝트 신청서가 총 4.1GW 규모로 검토 중에 있습니다.
고객에게 중요한 혜택은 신규 데이터 센터 수요 1GW당 월 전기 요금이 1-2% 감소할 수 있다는 점입니다. 프로젝트는 주로 실리콘밸리와 베이 지역에 위치하며, 일부는 센트럴 밸리와 새크라멘토에도 있습니다. PG&E는 70,000평방마일에 달하는 서비스 지역 전반에 걸쳐 종합적인 연구를 진행 중이며, 산호세에서 Westbank와 함께 넷제로 커뮤니티 프로젝트를 추진하고 있습니다.
PG&E (PCG) signale une forte augmentation de la demande électrique des centres de données, prévoyant 8,7 gigawatts (GW) de besoins énergétiques au cours de la prochaine décennie, contre 5,5 GW fin 2024. Le fournisseur gère actuellement 18 nouveaux projets de centres de données totalisant 1,4 GW en phase finale d'ingénierie, prévus pour une mise en service entre 2026 et 2030. Par ailleurs, 21 nouvelles demandes de projets totalisant 4,1 GW sont en cours d'examen.
Un avantage clé pour les clients : chaque nouvelle demande de 1 GW pour les centres de données pourrait réduire les factures d'électricité mensuelles de 1 à 2%. Les projets sont principalement situés dans la Silicon Valley et la région de la Baie, avec quelques-uns dans la Central Valley et Sacramento. PG&E mène une étude approfondie sur sa zone de service de 70 000 milles carrés et collabore avec Westbank sur un projet de communauté à émission nette zéro à San Jose.
PG&E (PCG) meldet einen deutlichen Anstieg der Stromnachfrage von Rechenzentren und prognostiziert 8,7 Gigawatt (GW) Leistungsbedarf im nächsten Jahrzehnt, gegenüber 5,5 GW Ende 2024. Das Versorgungsunternehmen verwaltet derzeit 18 neue Rechenzentrumsprojekte mit insgesamt 1,4 GW in der finalen Planungsphase, die zwischen 2026 und 2030 in Betrieb gehen sollen. Zusätzlich werden 21 neue Projektanträge mit insgesamt 4,1 GW geprüft.
Ein wesentlicher Vorteil für Kunden: Jede 1 GW neue Rechenzentrumsnachfrage könnte die monatlichen Stromrechnungen um 1-2% senken. Die Projekte befinden sich hauptsächlich im Silicon Valley und im Bay Area, einige auch im Central Valley und Sacramento. PG&E führt eine umfassende Studie über sein 70.000 Quadratmeilen großes Versorgungsgebiet durch und arbeitet mit Westbank an einem Netto-Null-Gemeinschaftsprojekt in San Jose zusammen.
- Every 1 GW of new data center demand could reduce customer bills by 1-2%
- Strong growth in data center demand with 8.7 GW projected over next 10 years
- 18 new data center projects (1.4 GW) in final engineering phase
- Additional 21 new project applications totaling 4.1 GW under review
- Better infrastructure utilization will improve cost efficiency
- None.
Insights
PG&E's surging data center demand will lower customer bills while leveraging existing infrastructure to distribute costs across higher electricity usage.
PG&E is experiencing extraordinary growth in data center electricity demand, with projected requirements jumping to 8.7 gigawatts (GW) over the next decade, up significantly from the 5.5 GW reported at the end of 2024. This represents power equivalent to serving approximately 6.5 million homes simultaneously.
The financial impact for existing customers is particularly noteworthy. For every
The company has 18 new data center projects totaling 1.4 GW in the final engineering phase, projected to begin operations between 2026-2030. Beyond this, PG&E received 21 additional applications totaling 4.1 GW of power demand through its follow-up cluster study.
PG&E's cluster approach to planning these power-intensive projects represents a significant operational efficiency. By consolidating applications rather than processing them individually, the utility can optimize grid planning, reduce connection costs, and accelerate time-to-power for data center customers.
The geographic diversification of these projects – primarily in Silicon Valley but expanding to the Central Valley and Sacramento regions – indicates a strategic approach to balancing grid load and leveraging existing transmission infrastructure. This expansion allows PG&E to maximize utilization of fixed assets while maintaining its clean energy profile, a critical competitive advantage for attracting data center customers in California.
Every 1,000 MW (or 1 GW) of New Electric Demand from Data Centers Could Decrease Monthly Electric Bills by 1
To give an idea of how much power that is—just 1 GW can power around 750,000 homes at the same time. PG&E is also proud to be the host utility for this week's DTECH Data Centers & AI Conference in
PG&E leaders will speak on topics like:
- How AI is changing energy use
- How to speed up power delivery to data centers
- How to work better with developers and communities
Mike Medeiros, Vice President, South Bay Delivery, PG&E, participates in the opening keynote today with several other utility executives to discuss load growth, reliability, and equitable data center expansion.
"What differentiates the opportunity for data centers in
Of the 8.7 GW, PG&E is working on 18 new data center projects totaling approximately 1.4 GW that are in the final engineering phase (the last step before project construction starts) and projected to begin operations between 2026 and 2030. Most of these are in Silicon Valley and the greater
Growth in data center demand is good news for all PG&E customers. PG&E estimates for every 1,000 MW (or 1 GW) of new electric demand from data centers it serves, PG&E electric customers may save between 1
New energy demand from data centers allows PG&E to utilize more of its existing power infrastructure. By spreading the costs over more units of energy, each customer's dollar can go further.
Looking Ahead: More Projects Across California
After a successful study of data center needs in Silicon Valley last year, PG&E is now doing a follow-up study across its entire service area—70,000 square miles of Northern and
In addition to the current 8.7 GW in PG&E's data center project pipeline noted in its first quarter 2025 earnings report, PG&E received 21 new data center project applications through its follow-up cluster study (launched in April 2025) totaling approximately 4.1 GW of additional power demand. PG&E is actively working with these customers through the end of the year to scope and finalize their requests.
By grouping applications and projects together, rather than individually, PG&E can plan better, save money, and connect customers faster.
PG&E is also working with real estate developer Westbank on a new net-zero community in downtown
To learn more about PG&E's plans for the future, including how it is accelerating connecting data centers and other large loads, visit www.pge.com/innovation.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and
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SOURCE Pacific Gas and Electric Company
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