Why the US power grid upgrade could top $1 trillion

The U.S. electric grid is facing a critical need for a massive upgrade, potentially costing over $1 trillion, due to aging infrastructure, rapidly increasing electricity demand, and the challenges posed by integrating renewable energy sources. The grid, much of which dates back to the post-World War II era, was originally designed for a stable, one-way flow of electricity from large coal and nuclear plants. However, the rise of intermittent renewable energy like solar and wind, combined with surging demand from electric vehicles, heat pumps, and energy-intensive AI data centers, has created a volatile supply-demand dynamic that the current grid cannot reliably manage. The American Society of Civil Engineers has rated the nation’s energy infrastructure a D+, underscoring its vulnerability. Addressing these challenges requires unprecedented investment: targeted modernization efforts involve billions in federal funding and over a trillion dollars in private utility spending projected through 2029. Efforts are already underway, including the installation of high-voltage DC transmission lines to transport solar power over