U.S. electric and gas utilities have requested $18.6 billion in rate increases from state regulators so far in 2026, driven by surging power demand from data centers, oil and gas operations, and growing general consumption that is stretching grid capacity to its limits.
The figure, compiled from regulatory filings tracked by industry groups, underscores the accelerating cost pressures facing American households and businesses as the power grid struggles to keep pace with the fastest demand growth in decades. Texas utility Oncor filed the single largest request at $1.2 billion, tied to infrastructure investments needed to serve expanding data center campuses and oil and gas operations across the state.
Data Centers Drive Unprecedented Power Demand
The scale of the data center power crunch is staggering. Goldman Sachs Research projects U.S. data center power demand will climb from 31 gigawatts in 2025 to 41 GW in 2026 and 66 GW by 2027, more than doubling in just two years. Year-over-year capacity additions are scheduled to reach 13.6 GW in 2026 and 36.3 GW in 2027, compared with 6.4 GW added in all of 2024.
ERCOT, the Texas grid operator, increased its 2030 data center growth estimate from 29 GW to 77 GW. PJM, which serves much of the mid-Atlantic, revised 2030 peak demand estimates upward by 10%. The share of U.S. data centers in total peak summer power demand is projected to rise from 4.1% in 2025 to 8.5% by 2027.
The 2026 Data Center Power Report from Bloom Energy and Power Magazine finds that IT load capacity could roughly double over the next three years from approximately 80 GW in 2025 to 150 GW by 2028, more than twice the level projected in 2024 forecasts. Texas is expected to emerge as the dominant hub, projected to exceed 40 GW of capacity by 2028, representing nearly 30% of total U.S. demand.
Grid Capacity Falling Behind Demand
Grid capacity continues to fall behind demand, creating a widening gap between when developers need power and when utilities can deliver it. In response, approximately one-third of data centers expected to be operational by 2030 are projected to rely entirely on onsite power generation, a 22% increase from previous estimates. This shift toward behind-the-meter power arrangements signals growing distrust in the grid’s ability to serve large loads on schedule.
Cities are pushing back. Seattle’s City Council passed a one-year moratorium preventing the siting of data centers exceeding 20 megavolt-amperes. Portland General Electric announced a 29% rate increase for large industrial users including data centers, while reducing residential rates by 1.3% under Oregon’s POWER Act, which requires large energy users to pay their share of infrastructure costs.
The Nuclear Innovation Alliance released its 2026 guide for state policymakers, noting that approximately 250 nuclear energy bills were introduced in state legislatures this year as states scramble to find reliable, clean power sources to meet surging demand. The guide focuses on workforce development, expediting permitting, and lowering financial risk to attract new nuclear projects.
Sources: Bloom Energy/Power Magazine 2026 Data Center Power Report; Goldman Sachs Research; Nuclear Innovation Alliance 2026 State Policymakers Guide; IADC Monthly Energy Watch August 2026
discussion