On the Horizon: US data center operators should prepare for government engagement

*This article was co-authored by Matt Kellogg, principal at Rich Feuer Anderson.

The US energy sector is at an inflection point. According to a study by Grid Strategies analyzing the 2023 Federal Energy Regulatory Commission (FERC) filings of grid planning entities, the forecast of electricity demand growth is up from 2.6 percent to 4.7 percent over the next five years.

Similarly, electrical grid planners forecast peak demand growth of 38GW through 2028. One of the main drivers of increased power demand has been the surge in data center development.

Of the eight regional planning areas’ filings examined by Grid Strategies, seven cited data center development as a main driver of electricity demand growth forecasts.