Pacific Gas and Electric Company (PG&E) unveiled a new ambitious $73 billion capital expenditure program through 2030, marking one of the largest infrastructure investment commitments in the company’s history. This large sum is earmarked for a comprehensive modernization of Central and Northern California’s electrical grid, addressing both the immediate, unprecedented surge in electricity demand from the artificial intelligence (AI) sector and the existential threat of wildfires.
The utility, which serves 5.3 million electricity customers across 47 counties, confirmed the multi-billion-dollar initiative is a direct response to a structural “load shock” caused by hyperscale data centers dedicated to AI and cloud infrastructure. PG&E projects that its service territory will host as much as 10 gigawatts (GW) of new electricity load from data centers slated for development over the next decade. To put this demand in perspective, a single advanced AI campus can draw as much power as a small city, rapidly overwhelming existing infrastructure designed for previous growth forecasts.
A PG&E spokesperson stated that this is an energy mandate driven by innovation. For example, the needs of the AI economy, combined with California’s ambitious clean energy transition, requires a grid that is not just resilient but exponentially more capable.
The investment comes at a crucial time for the state’s energy infrastructure. The California Independent System Operator (CAISO) projects peak demand climbing by about 15% by 2030, even before factoring in the speculative loads from AI and data centers. The capital outlay signals PG&E’s effort to keep pace with the exponential growth curve, a challenge shared by utilities nationwide as AI becomes a dominant driver of electricity consumption.
While the need to power AI is the new headline driver, the long-term plan folds in essential elements of grid safety and hardening. A major portion of the $73 billion will be dedicated to wildfire mitigation projects, including accelerating the undergrounding of power lines and enhancing vegetation management to protect infrastructure against climate-driven risks.
The announcement detailed PG&E’s contribution to California’s expanded wildfire fund. Starting in 2029, the utility will contribute $144 million annually to the fund. And this obligation follows recent state legislation that reduced PG&E’s financial responsibility for the fund by 25%.
The dual focus on grid expansion for technology and grid hardening for safety is designed to create a more resilient system capable of handling intermittency from renewable energy sources while accommodating the enormous new consumption loads.
The utility’s plan will be subject to regulatory scrutiny by the California Public Utilities Commission (CPUC), which will review the planned expenditures and determine how the costs will ultimately be reflected in customer rates.
