A new report titled “Out of Sync: The Infrastructure Misalignment Undermining the U.S. Grid” warns of mounting risks to grid reliability as energy demand accelerates faster than the nation’s infrastructure can keep up. From transformer bottlenecks to natural gas storage constraints, the U.S. power system is under increasing strain with major implications for investors, developers, and consumers alike.
Demand Surging, Infrastructure Lagging
Electricity demand is entering a new growth era, driven by AI-powered data centers, EV adoption, and industrial reshoring. Yet, transmission projects still take an average of 10 years to complete. In 2024, just 5,600 circuit miles of new lines were added, most at lower voltages.
Meanwhile, aging distribution equipment and chronic permitting delays are slowing down urgently needed upgrades.
AI and Data Centers Are Changing the Game
Hyperscale data centers are expected to add 47 GW of demand by 2030, much of it sourced directly from utilities or on site generation. These behind-the-meter loads are difficult to forecast, but their impact on local grids is immediate and substantial.
Natural Gas Dependency Creates Reliability Risk
Gas fired power remains essential for reliability, but U.S. gas infrastructure isn\’t keeping pace. Storage capacity is barely growing, even as cold weather events increasingly expose the interdependence of gas and electric systems.
Today, gas storage withdrawals contribute 144x more power than all U.S. battery and hydro storage combined, underscoring the scale of the challenge.
Call to Action: Modernize, Coordinate, Build
This spike in electricity demand is arriving during a broader transformation of the U.S. energy grid. Utilities are under pressure to The report emphasizes the need for:
- Coordinated planning between electric and gas systems
- Acceleration of transmission and pipeline development
- Strategic workforce investment
- Federal-state alignment on permitting and incentives
