Energy Officials Pressured to Expand Grid as AI Demand Surges
The department is exploring using federal land and agency sites to speed data center buildout.
WASHINGTON, April 16, 2026 – Energy Secretary Chris Wright said Thursday that surging demand from AI and data centers is reshaping U.S. energy policy, as lawmakers questioned how the Department of Energy can expand power supply without increasing electricity costs.
Testifying before the House Energy and Commerce committee, Wright said that AI, data centers, and reshoring manufacturing are creating “huge demand for electricity,” requiring rapid expansion of generation and grid capacity.
The department is working with industry to ensure data centers can connect to the grid “in a way that drives down prices and does not burden ratepayers,” he said.
Wright said DOE is exploring the use of federal land and existing department sites to accelerate deployment of data centers alongside new power generation.
Wright pointed to a project in Portsmouth, Ohio, during questioning from Rep. Troy Balderson, R-Ohio. A former federal site is being evaluated for combined energy production and data center development. He said the goal is to expand supply while shielding local consumers from price increases.
Responding to Rep. Gary Palmer, R-Ala., Wright said neither the U.S. nor China can sustain AI growth relying only on renewable energy. He said “dispatchable” sources like nuclear power will be “crucial” to powering AI systems without increasing costs.
Palmer warned that China’s nuclear expansion could give it an advantage in AI, raising concerns about U.S. competitiveness.
Lawmakers from both parties, including Palmer and Rep. Scott Peters, D-Calif., also raised concerns about permitting delays. Wright said reforms are needed to speed construction of power generation and transmission infrastructure needed to support data centers.
Democrats focused on affordability and grid resilience. Rep. Kathy Castor, D-Fla., and Rep. Frank Pallone, D-N.J., criticized rising energy costs, while Rep. Jennifer McClellan, D-Va., warned that cuts to cybersecurity programs for rural utilities could leave parts of the grid vulnerable.
Wright said cybersecurity is a “major” issue and that DoE is working to strengthen protections.
He also highlighted broader efforts to align energy policy with emerging technologies, including AI and quantum computing.
Wright highlighted the DoE’s Genesis Mission aimed at advancing AI innovation and said the department is partnering with national laboratories, universities, and private industry to accelerate development in energy dominance and national security.
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