CPUC Approves Interim Rule for PG&E to Accelerate Grid Connections for Large Loads
OAKLAND, Calif., July 31, 2025 /PRNewswire/ — Pacific Gas and Electric Company (PG&E) today shared that it is proactively working to serve 10 gigawatts (GW) of new electricity demand from data center projects over the next ten years—that’s enough energy to power approximately 7.5 million homes simultaneously.
The 10 GW in PG&E’s data center project pipeline reflects a significant increase from the 8.7 GW of data center demand PG&E reported in May and the 5.5 GW the company reported in February.
This milestone includes the results of PG&E’s April 2025 study of data center applications from across its 70,000 square mile service area.
“Data centers are powering more than just the digital world—they’re helping power California’s future and PG&E is proud to lead the way in meeting growing demand for data centers,” said Mike Medeiros, Vice President, South Bay Delivery, PG&E. “This growth can help lower costs for all electric customers while creating tens of thousands of jobs and billions in local revenue.”
Delivering Benefits for Customers and Communities
PG&E estimates the 10 GW of anticipated data center load growth could lead to:
- Lower customer electric bills by 10% or more by spreading fixed costs across more energy usage1
- Create 50,000 construction jobs and 115,000 associated support jobs
- Add 5,000 permanent tech jobs and 28,500 permanent support roles
- Generate $1.25 to $1.75 billion in increased property tax revenue
- Contribute $2.5 to $3 billion in additional sales tax revenue
Of the 10 GW, 17 data center projects totaling approximately 1.5 GW are in the final engineering phase (the last step before project construction starts) and projected to begin operations between 2026 and 2030. Most of these are in San Jose, Silicon Valley and the greater San Francisco Bay Area, but some are also in the Central Valley and Sacramento.
Growth in data center demand is good news for all PG&E customers. PG&E estimates for every 1,000 MW (or 1 GW) of new electric demand from data centers it serves, PG&E electric customers may save between 1-2% on their monthly bill in the long term, while serving those customers with some of the cleanest electricity in the United States.
New energy demand from data centers allows PG&E to utilize more of its existing power infrastructure. Today, PG&E’s grid is 45% utilized on average. By spreading the fixed costs of operating and maintaining the grid over more units of energy, PG&E can increase the average grid utilization rate and each customer’s dollar can go further.
CPUC Approves Interim Implementation of PG&E’s Rule 30 Large Load Proposal
In addition to data centers, PG&E is getting more applications to power large, new loads including from warehouses, electric vehicle fleets and manufacturing growth. To support this surge in large-load interconnection requests the California Public Utilities Commission (CPUC) has approved PG&E’s proposal for interim implementation of Electric Rule 30.
Rule 30 provides a streamlined, transparent, and equitable pathway for transmission-level retail electric service. Under the interim rule, applicants who agree to fund necessary transmission infrastructure upfront can benefit from accelerated grid connections.
“Our large-load customers have asked for the ability to fund their projects upfront, which helps us serve them faster,” Medeiros said. “We greatly appreciate the Commission’s decision to implement an interim approach while the permanent process is finalized. This is a great step forward and solid recognition of the importance of Rule 30.”
PG&E is committed to working with regulators, developers, and communities to ensure this growth is sustainable and beneficial for all Californians.
About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com, pge.com/news and pge.com/innovation.
|
_______________________________ |
|
1 Actual results could differ materially from this forecast depending on interconnection costs, the amount of power used by customers, the price of power, and the amount of cost recovery approved in ratemaking proceedings. Assumes additional power supply costs from serving new data center load are not borne by other customers. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/pge-data-center-demand-pipeline-swells-to-10-gigawatts-with-potential-to-unlock-billions-in-benefits-for-california-302518859.html
SOURCE Pacific Gas and Electric Company
