Electric Power Generation & Distribution NAICS 2211

Jan 22, 2026 - Calls Increase for Data Centers to Pay More for Power

• Governors, senators, and tech leaders are increasingly pushing data center operators to shoulder more of the rising electricity costs tied to rapid AI growth, but they remain divided on how much the industry should pay, according to The New York Times. Lawmakers in at least a dozen states, including Florida, Oklahoma, New York, and California, are advancing proposals to shield residents and small businesses from higher bills as data center power use could reach 12 percent of U.S. electricity by 2028. Maryland Senator Chris Van Hollen introduced a bill to require tech companies to cover grid upgrade costs, while President Trump and several governors are preparing a plan for long-term contracts to finance new power plants in the PJM region, where rates are climbing quickly. Tech companies have offered mixed responses, with some pledging to pay more and others arguing they already cover their costs.
• The Electric Reliability Council of Texas (ERCOT) is evaluating how to handle a massive surge in large-load interconnection requests from data centers, according to Utility Dive. Texas grid planners are evaluating more than 233 GW of potential new demand, with over 70% tied to data centers. ERCOT officials said the total large load capacity under review near the end of 2025 was almost 300% higher than the previous year, overwhelming processes designed for far fewer requests. The Public Utility Commission of Texas, which regulates ERCOT, is implementing state law SB 6 to standardize interconnection rules, improve load forecasting, and set data center curtailment requirements. ERCOT is also reviewing 2,000 new generation interconnection requests totaling 432 GW, mostly solar and storage. Utilities such as Oncor are beginning regulatory filings for major lines expected to come online by late 2028.

• In early January, electric utility Vistra said it would buy Cogentrix Energy and its 10 natural gas plants from Quantum Capital Group for about $4.7 billion as it works to meet rising U.S. power demand driven by data centers and AI growth, according to Reuters. The deal includes cash, stock, and assumed debt, and follows Vistra’s 2025 purchase of seven gas plants from Lotus Infrastructure Partners. The acquisition adds 5,500 megawatts of capacity across the PJM, ISO New England, and ERCOT grids, including combined-cycle, combustion-turbine, and cogeneration facilities. Vistra CEO Jim Burke said the portfolio strengthens the company’s position in every competitive power region where it operates. The U.S. Energy Information Administration expects national electricity use to hit record highs in 2026. The transaction is expected to close in mid to late 2026.
• Wholesale electricity prices are projected to rise sharply, with the US Energy Information Administration forecasting a load-weighted average of $47 per megawatt-hour in 2025, a 23% increase from 2024, and $51 in 2026, representing an 8.5% increase. The surge is primarily driven by a 45% increase at the Electric Reliability Council of Texas-North hub, reflecting higher natural gas costs and anticipated summer demand spikes. Electricity sales nationwide are projected to grow 2.4% in 2025 and 2.6% in 2026; however, the West South Central region, driven by data centers and cryptocurrency mining, is expected to experience significantly faster growth. Rising natural gas prices, tied to increased liquefied natural gas exports, are also contributing to higher power costs.