This analysis builds on insights from the National Load Growth Report 2024 by Grid Strategies, which underscores the urgency of adapting to this rapid transformation.

The U.S. energy landscape is undergoing a seismic shift. For decades, the industry experienced near zero electricity demand growth, but today, we are witnessing an extraordinary transformation. Electricity demand is projected to grow by 128 GW in the next five years—a five-fold increase compared to forecasts from just two years ago.

This unprecedented surge is fueled by a confluence of factors: the rise of AI-powered data centers, the expansion of advanced manufacturing, the emergence of hydrogen hubs, and the electrification of transportation and buildings. Each of these drivers is redefining how energy is generated, distributed, and consumed, pushing the grid, the dormant giant stuck in the middle between generation and consumers, to evolve rapidly.

For utilities, grid operators, and the energy ecosystem as a whole, this transformation presents both opportunities and significant challenges. The critical question is: how can we meet this growth in demand in a timely an cost-effective manner?

Data Centers: The Epicenter of Growth

Among the key contributors to this demand, data centers stand out. With forecasts estimating over 90 GW of additional demand by 2029, these digital powerhouses are becoming a dominant force in grid planning. AI-driven operations, in particular, are reshaping energy requirements. By 2030, AI is expected to account for 70% of new data center demand.

This evolution is not without its challenges. Data centers require unparalleled reliability, consistent power quality, and swift deployment of resources. Meeting these demands with co-located generation and/or using traditional grid infrastructure expansion (aka new transmission lines) could result in substantial costs and extended timelines. It’s clear that innovation is not just necessary—it’s imperative.

Advanced Manufacturing and Electrification

While data centers dominate headlines, other drivers of demand are equally transformative. The resurgence of domestic manufacturing, driven by sectors like semiconductors and battery production, is significantly increasing energy needs. Clean manufacturing investments have surged in key regions like Georgia and Ohio.

Similarly, the electrification of buildings and transportation is gaining momentum. In states like New York, the shift to electrified heating is expected to change peak demand patterns, with winter peaks surpassing summer peaks by 2035. These trends are challenging the traditional assumptions of energy distribution and demanding more agile solutions to maintain resilience.

A Smarter (and faster) Solution: Optimizing the Grid We Have

At Smart Wires, we are committed to enabling the energy sector to meet these challenges head-on. Advanced power flow control (APFC) technology offers a smarter, more efficient approach to managing the grid constraints.

By dynamically redirecting power flows for overloaded to underutilized assets, APFC allows utilities to reduce total electricity production costs while increasing reliability of supply. The best part is, these projects can be implemented 2 to 4x times faster than traditional grid expansion methods. This can ensure industries like data centers and manufacturing receive the power they need, precisely when and where it’s required.

This approach is about unlocking potential—making the grid smarter, more flexible, and future-ready.

Leading the Charge

The next five years will be pivotal for the U.S. energy sector. The decisions we make today will determine whether we can rise to the challenge of growing demand while maintaining reliability and cost-efficiency.

At Smart Wires, we are proud to be at the forefront of this transformation. Through collaboration with utilities and grid operators across the world, we are driving innovation that supports economic growth, energy security, and environmental sustainability.

This moment demands bold action and forward-thinking solutions. Together, we can ensure that the grid not only meets today’s demands but is equipped to power the opportunities of tomorrow.

Contact us to learn more about how we’re shaping the grid of the future.