American utility company Pacific Gas and Electric Company (PG&E Corp) announced on Monday that it plans to invest $73 billion by 2030 in transmission system upgrades to meet the surge in electricity demand driven by data centers.
The company stated in July that it is working to meet an additional 10 gigawatts (GW) of power demand from data center projects over the next decade.
According to data from the U.S. Energy Information Administration (EIA), electricity consumption in 2025 and 2026 is expected to reach historic highs, driven by surging data center demand fueled by the proliferation of artificial intelligence (AI) applications.
Additionally, Pacific Gas and Electric has faced criticism for causing multiple wildfires, including some of California's most deadly wildfire incidents, and the company is currently working to improve grid reliability through investments.
In its 2026-2028 planning document submitted in March this year, the company stated it plans to build nearly 700 miles (approximately 1,127 kilometers) of underground transmission lines between 2025 and 2026, and complete an additional 500 miles (approximately 805 kilometers) of wildfire safety system upgrades.
The California-based utility company also announced on Monday that under California Senate Bill 254 (SB 254), its share in the $18 billion California wildfire fund continuation account will decrease from 64.20% to 47.85%. Additionally, utility companies now have priority purchase rights over insurance subrogation claims.
California Senate Bill 254 (SB 254) is a state-level law in California designed to reform the state's wildfire liability and funding framework for utility companies, including Pacific Gas and Electric.
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