Already Signed: Data Center Deals Equal Half of New Jersey's Power Use

Already Signed: Data Center Deals Equal Half of New Jersey's Power Use
Much of the conversation about data centers focuses on speculative requests that may never be built. But some of this demand is already locked in. By the end of 2025, data center projects with signed agreements on PG&E's system had reached about 4,000 megawatts, nearly double the 2,000 megawatts from just three months earlier.

How big is 4,000 megawatts?
Running at full power year-round, 4,000 megawatts equals about 35 billion kilowatt-hours a year. New Jersey, a state of more than 9 million people, used about 74 billion kilowatt-hours in 2024, according to the U.S. Energy Information Administration. That means PG&E's signed data center agreements alone equal about half of New Jersey's annual electricity use. At 8,000 kilowatt-hours per home, it is about 4.4 million homes' worth of power.

These are not just requests
Total data center requests on PG&E's system reached about 15,000 megawatts, and many of those may never break ground. Signed agreements are different. They represent projects that have moved past the inquiry stage and committed to connecting to the grid.

What it means for homeowners
To serve that demand, PG&E will need new infrastructure. Regulators have adopted rules requiring certain large applicants to pay for transmission work upfront, but consumer advocates warn those protections do not cover every cost. Data centers also run around the clock, adding demand during the evening peak, when electricity is most expensive.
The impact on any individual bill will depend on many factors. But the direction is clear: demand is growing, and the grid has to grow with it.

Choosing your side of the meter
As AI drives up energy demand, homeowners will either keep buying every kilowatt-hour from the grid or start producing their own. Homes with solar and batteries use their own power first, cover expensive evening hours with stored energy, and send extra electricity back to the grid for compensation. Not every homeowner loves the idea of supplying a grid that serves data centers. But being a supplier is better than being on the other side of the meter, paying more as demand grows.

Supply your own home without buying equipment
Qualifying homeowners can get solar and battery storage through third-party ownership programs without buying or financing equipment. Many agreements include maintenance and battery replacement for the term and a rate designed to come in below utility rates.

The takeaway
Signed data center deals already equal half of New Jersey's electricity use. Homeowners can secure their own power now, with savings that can reach up to 40 percent compared with utility rates, depending on the home and program.

To find out if your home qualifies for a TPO solar and battery program, visit myhomesolution.org/california_public_utility_commissions