Pacific Gas and Electric Company (PG&E) has announced its goal to meet 10 gigawatts (GW) of new electricity demand from data center projects over the next decade, enough to power approximately 7.5 million homes at once. This figure represents a notable increase from previous estimates, with PG&E reporting 8.7 GW in May and 5.5 GW in February.
The announcement follows PG&E’s April 2025 study of data center applications across its extensive service area. Mike Medeiros, Vice President of South Bay Delivery at PG&E, emphasized that data centers are integral to both the digital landscape and California’s energy future. The anticipated growth in data center demand is expected to lower electricity costs for all customers, create tens of thousands of jobs, and generate significant local revenue.
Key benefits projected from this 10 GW growth include:
- A potential 10% or more reduction in customer electric bills by distributing fixed costs across a larger energy usage base.
- Creation of 50,000 construction jobs and 115,000 associated support jobs.
- Generation of 5,000 permanent tech jobs and 28,500 permanent support roles.
- An increase of $1.25 to $1.75 billion in property tax revenue.
- Additional sales tax revenue estimated between $2.5 to $3 billion.
Currently, 17 data center projects totaling approximately 1.5 GW are in the final engineering phase, with operations expected to commence between 2026 and 2030, primarily in regions such as San Jose and Silicon Valley.
The growth in data center demand is advantageous for PG&E customers, as estimates suggest that for every 1 GW of new electric demand from data centers served, customers might benefit from a 1-2% reduction in their monthly bills over time. This new demand enables PG&E to maximize its existing power infrastructure, which is currently only 45% utilized on average.
In addition to supporting data centers, PG&E is also addressing applications for large electric loads from warehouses, electric vehicle fleets, and manufacturing. The California Public Utilities Commission (CPUC) has approved PG&E’s interim implementation of Electric Rule 30, which streamlines the process for transmission-level retail electric service. Under this rule, applicants can expedite their grid connections by funding necessary infrastructure upfront.
PG&E is committed to collaborating with regulators, developers, and communities to ensure that this growth is sustainable and beneficial for all Californians.
