Dipesh Pherwani

Executive Summary Key Findings: The "Who Pays?" Conflict is Escalating: Traditional "socialized" cost-recovery models are breaking down under the scale of required grid investments. With PJM’s congestion costs rising by 64% in 2024 and Texas planning $30B+ in transmission upgrades, regulators face pressure to protect residential ratepayers from cross-subsidizing tech giants.

Electricity consumption growth rates are increasing across the United States, driven, in part, by a boom in hyperscale data center development. Although the long-term market outlook remains uncertain, the Lawrence Berkeley National Laboratory predicts that data center demand will grow from 176 terawatt hours (TWh) in 2023 (or, about 4.4% of total U.S. electricity consumption) to between 325-580 TWh (6.7-12.0%) by 2028.