PG&E projects data center growth will reduce energy costs for customers

Pacific Gas and Electric Company anticipates increased electricity demand driven by new data center, projecting a rise from 5.5 gigawatts (GW) to 8.7 GW over the next decade. The utility expects this growth will enable savings on monthly bills, estimating a reduction of 1-2% for customers with every additional 1,000 megawatts (MW) of new electric demand.

The data center, which support functionalities such as cloud storage and Artificial Intelligence (AI), will require significant power resources, prompting PG&E to address the increasing demand. Leaders from PG&E will speak at the DTECH Data Center & AI Conference to discuss strategies for meeting the energy needs of these facilities.

PGA&E is currently managing 18 new data center projects in the engineering phase, anticipated to begin operations between 2026 and 2030. These projects are mainly concentrated in Silicon Valley and the greater San Francisco Bay Area.

In addition to ongoing projects, PG&E received 21 new project applications totaling approximately 4.1 GW from the follow-up study of data center needs launched in April 2025. This response allows PG&E to plan better and connect customers more efficiently, fostering an environment for collaborative growth.

Looking ahead, PG&E is focused on continuing to support the energy demands of data center across its service area in Northern and Central California. A cooperative approach with project developers aims to enhance infrastructure and community engagement.