House Energy Subcommittee Warns AI, Manufacturing Could Strain U.S. Grid
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Summary
Witnesses and members told the House Energy Subcommittee that rapid growth in data centers and onshoring of manufacturing is driving demand at a pace that could outstrip available dispatchable generation and transmission, creating risks to reliability and affordability.
The House Energy Subcommittee on Energy opened a Thursday hearing on the nation’s bulk power system with members and witnesses warning that rapid demand growth from artificial intelligence data centers and reshoring of manufacturing could outpace the grid’s ability to deliver reliable, affordable electricity.
Subcommittee Chair Bob Latta said the country faces “historic increases in electric demand, primarily from energy intensive AI models and domestic manufacturing,” and warned that “we need more energy and we need it fast.” The hearing sought to surface where planning, transmission and generation shortfalls could create reliability risks and higher costs for consumers.
Why it matters: Multiple witnesses told the subcommittee the same basic problem — demand is rising fast while substantial amounts of dispatchable generation are retiring. Asim Haque, senior vice president of governmental and member services at PJM Interconnection, testified that PJM forecasts its summer peak could climb to about 220,000 megawatts over the next 15 years, and that reserve margins are being eroded by retirements.
PJM and other grid operators cited retirements of thermal plants and a queue filled with primarily renewable projects that are not constructing quickly enough to replace dispatchable capacity. Mr. Haque said the resources leaving the system are “larger dispatchable coal and gas resources,” while the resources entering are “primarily intermittent renewable resources.”
Duke University researcher Tyler Norris said the U.S. power system’s average utilization is about 53 percent, and that modest flexibility from very large loads — for example, allowing a small fraction of peak operating hours to be curtailed or shifted — could let the grid absorb large new loads while longer-lead resources are developed.
Tests of resilience and real-time operations also drew attention. Witnesses said industry planning and improved interconnection processes are part of the solution, but that transmission, permitting and financing constraints can delay new generation by years while data centers can be built in far shorter windows.
What members asked: Lawmakers pressed witnesses on whether the grid can withstand extreme events like polar vortices if retirements continue. Mr. Haque said the supply–demand crunch could worsen reliability at peak moments. Members pressed for more transmission, a mix of resource types and clearer planning that accounts for both near-term load growth and long-lead investments.
Looking ahead: Witnesses urged a combination of measures: faster interconnection for viable projects, targeted transmission buildout, demand flexibility from large new loads, and policies that support long-lead clean firm resources alongside near-term dispatchable generation. The committee signaled further hearings and follow-up work to translate the testimony into legislative options.
