PG&E forecasts data center growth may lower customer energy bills

Pacific Gas and Electric Company is preparing for heightened electricity demand, especially from new data centers, estimating a jump from 5.5 gigawatts (GW) to 8.7 GW over the next decade. This increase is projected to lower monthly bills by 1-2% for customers for every additional 1,000 megawatts (MW) of electric demand.

The emerging data centers, which support services including cloud storage and Artificial Intelligence (AI), will necessitate substantial power resources. PG&E leaders will participate in the DTECH Data Center & AI Conference to address strategies to accommodate this growing energy requirement.

PG&E is overseeing 18 new data center projects currently in the engineering phase, set to commence operations between 2026 and 2030. Most of these projects are located in Silicon Valley and the broader San Francisco Bay Area.

Additionally, PG&E has received 21 applications for new projects, amounting to around 4.1 GW, following a comprehensive study initiated in April 2025. This response aids PG&E in optimizing planning and enhancing customer connectivity, promoting an environment conducive to collaborative development.

Overall, PG&E aims to support the energy requirements of data centers throughout Northern and Central California, fostering partnerships with project developers to improve infrastructure and community relations.