Imagine All of New York Plugging Into California's Grid That's What Data Centers Want

Imagine All of New York Plugging Into California's Grid
That's What Data Centers Want
Imagine every light switch, subway car, office building and factory in New York State suddenly plugging into California's power grid. It sounds impossible, but that is roughly the scale of what data center developers are asking California utilities to supply.

The comparison
New York used about 140 billion kilowatt-hours of electricity in 2024, according to the U.S. Energy Information Administration. Data center developers have asked PG&E for about 15,000 megawatts of power. Running at full power year-round, that would be about 131 billion kilowatt-hours a year, almost an entire New York. Not every request will be built. Many are early-stage or speculative. But signed agreements on PG&E's system reached about 4,000 megawatts by the end of 2025, and Southern California Edison has nearly 5,000 megawatts of data center requests of its own.

Who pays for new lines and substations?
To serve that kind of demand, utilities would need to build new transmission lines, substations and power plants. California's Public Advocates Office has warned that transmission upgrades for data centers could cost billions. If projects are withdrawn or fail to produce expected revenue, those costs could fall on everyday ratepayers. Regulators have adopted some protections, such as requiring certain large applicants to pay for transmission work upfront. But consumer advocates say those rules do not cover every cost or every part of the state.

A grid built for less
Much of California's grid was built decades ago. A 2017 internal PG&E estimate put the average age of its transmission towers at about 68 years, past their expected life of 65 years. The grid now has to handle growing demand from data centers, electric vehicles and electric appliances all at once.

Which side of the meter are you on?
Every home will end up on one side of the meter. Homes that only buy power will feel the cost of a growing grid. Homes with solar and batteries produce their own power, use stored energy during peak hours, and send extra electricity back to the grid for compensation. Some homeowners may not love the idea of supplying the grid that serves data centers. But it is better than being on the other side, paying for every upgrade.

Getting there without buying equipment
Qualifying homeowners can get solar and battery storage through third-party ownership programs without buying or financing equipment. Many programs include maintenance and battery replacement for the term, and SB 913 directs regulators to value battery power sent to the grid during high demand.

The takeaway
Data centers want almost a New York's worth of power. Homeowners can protect themselves by producing and storing their own, 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