Pacific Gas and Electric Company (PG&E) has announced that it is preparing to meet 10 gigawatts (GW) of new electricity demand from data center projects over the next decade. This increase in projected demand marks a significant rise from previous reports, with PG&E citing 8.7 GW in May and 5.5 GW in February.
The company’s latest estimate follows an April 2025 study of data center applications throughout its service area, which spans 70,000 square miles.
“Data centers are powering more than just the digital world—they’re helping power California’s future and PG&E is proud to lead the way in meeting growing demand for data centers,” said Mike Medeiros, Vice President, South Bay Delivery, PG&E. “This growth can help lower costs for all electric customers while creating tens of thousands of jobs and billions in local revenue.”
Seventeen data center projects, representing about 1.5 GW of capacity, are currently in final engineering stages and expected to start operations between 2026 and 2030. While most are located in San Jose, Silicon Valley, and the greater San Francisco Bay Area, others are planned for the Central Valley and Sacramento regions.
PG&E projects that increased energy demand from these data centers will allow for better use of existing infrastructure. The utility’s grid currently operates at an average utilization rate of 45%. By serving additional large customers such as data centers, fixed costs can be distributed across more units of energy delivered. As a result, PG&E estimates that every additional gigawatt served could translate into long-term savings of one to two percent on monthly bills for all electric customers.
In addition to the growth in data center demand, PG&E is also seeing more requests for large-load connections from other sectors like warehouses, electric vehicle fleets, and manufacturing facilities.
To address this surge in large-load interconnection requests, the California Public Utilities Commission (CPUC) has approved interim implementation of Electric Rule 30—a proposal put forward by PG&E. The rule offers a streamlined process for transmission-level retail electric service; under its terms, applicants who fund necessary transmission infrastructure upfront may receive faster grid connections.
“Our large-load customers have asked for the ability to fund their projects upfront, which helps us serve them faster,” Medeiros said. “We greatly appreciate the Commission’s decision to implement an interim approach while the permanent process is finalized. This is a great step forward and solid recognition of the importance of Rule 30.”
PG&E states it will continue working with regulators, developers, and communities to ensure sustainable growth benefits residents across California.
For further details see https://www.prnewswire.com/news-releases/pge-data-center-demand-pipeline-swells-to-10-gigawatts-with-potential-to-unlock-billions-in-benefits-for-california-302518859.html
