Rising data-center demand is straining the aging U.S. grid as tech companies invest directly in power infrastructure. The Energy Department projects data-center electricity use could nearly triple, reaching up to 12% of U.S. demand by 2028.
Google, Microsoft and Nvidia are among the companies investing directly in grid infrastructure to secure reliable power faster. Massachusetts startup VEIR says its superconducting lines can carry 5 to 10 times more power through the same footprint; it raised $75 million with Microsoft backing in 2025 as it expanded its focus from utilities to data centers. Voltus launched a model that lets data-center developers directly finance local community virtual power plants to offset their energy use.
The article says data-center demand is raising electricity prices and the risk of outages, while construction raises concerns about water and land use, diesel pollution and unequal burdens on communities. Texas Gov. Greg Abbott this week directed TCEQ to halt all permits sought by data centers; 16 other states have introduced moratorium bills in 2026. Denmark's grid operator paused new data-center connections nationally in May after project requests reached 60 gigawatts, about eight times peak demand.
