Pacific Gas and Electric Company (PG&E) announced it is preparing to serve 10 gigawatts (GW) of new electricity demand from data center projects over the next decade. This figure represents a notable increase from previous estimates, with PG&E reporting 8.7 GW in May and 5.5 GW in February. The updated projection follows a company study conducted in April 2025 that examined data center applications throughout its service area.
“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.”
Of the total projected demand, 17 data center projects amounting to approximately 1.5 GW are currently in their final engineering phase. These projects are expected to begin operations between 2026 and 2030. Most are located in San Jose, Silicon Valley, and the greater San Francisco Bay Area, with additional sites planned for the Central Valley and Sacramento.
According to PG&E, an increase in large-scale energy users such as data centers could result in long-term savings for customers. The company estimates that each additional gigawatt of demand could lower monthly bills by 1-2% by spreading fixed grid costs across more usage.
Currently, PG&E’s power grid operates at about 45% utilization on average. The anticipated rise in energy consumption from new data centers would allow the utility to use its existing infrastructure more efficiently.
To accommodate increased requests for large load connections—including those from warehouses, electric vehicle fleets, and manufacturing—the California Public Utilities Commission (CPUC) has approved interim implementation of Electric Rule 30 proposed by PG&E. Rule 30 offers a process for applicants who fund necessary transmission infrastructure upfront to gain 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 as these changes take place.
For further information: 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
