INSIGHTSSERIES
Power & Utilities | Smart Grid
February 2, 2026
Data Center Expansion Reshapes Utility Planning and Rate Design
States are reassessing long-term planning and cost-allocation frameworks to address reliability risks and ratepayer impacts associated with large load growth.
Electricity demand is rising faster and more unevenly than anticipated, drawing increased attention to long-term resource planning and…Read the full report
Key Takeaways
- Summer peak demand across North America is projected to increase by 224 gigawatts (GW) over the next decade, a 69 percent increase over last year’s forecast, with data center expansion accounting for most of the projected increase, according to NERC.
- Rapidly changing demand patterns are stressing generation and transmission systems, reshaping how regulators and utilities approach long-term resource planning.
- Utility regulators are revisiting rate structures and cost-recovery mechanisms in response to the emerging impacts of large loads on electricity prices, infrastructure investment, and grid reliability.
