New Energy Demand from Data Centers to Help
Lower Costs for Electric Customers
'Rule 30' Tariff Proposal Establishes a
Streamlined, Equitable Process for Connecting Large Demand
Customers like Data Centers and Tech Campuses
OAKLAND,
Calif., Feb. 13, 2025 /PRNewswire/ -- Pacific Gas
and Electric Company (PG&E) is working to serve approximately
5.5 gigawatts (GW) of new data center energy demand over the
next decade, with 1.4 GW currently in final design and projected to
come online between 2026 and 2030.
To put this in perspective, 1 GW is enough power to serve the
demand of about 750,000 homes at once.
The 1.4 GW of new data center load comes from 15
customers and represents 27 unique sites.
New data center load expected to come online over the next five
years includes 740 megawatts that PG&E evaluated through its
original cluster study in 2024. This load represents projects
located in Silicon Valley and the surrounding communities of the
greater San Francisco Bay
Area.
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. By spreading the costs over
more units of energy, each customer's dollar can go
further.
PG&E launched the cluster study to better respond to
customers' needs when it comes to large loads
like data centers. The study aimed to more efficiently
meet customers' energy needs and timelines. By grouping
applications and projects together, rather than individually,
PG&E can more quickly confirm the demand and get these
customers connected.
"PG&E is taking a thoughtful, deliberate process of pursuing
load growth and we see a clear path to lowering customer bills as a
result of adding what we call beneficial load," said Jason Glickman, executive vice president,
Engineering, Planning and Strategy, PG&E. "Electricity growth
from data centers allows us to better utilize our existing
electric infrastructure as we build what's needed and deliver more
per customer dollar. We are excited to be partnering with these
customers, serving the innovation capital of the world, and doing
so in a way that positively impacts Californians."
Rule 30 Tariff
In addition to data centers,
PG&E is getting more applications to power other large, new
loads including from warehouses, electric vehicle fleets and
manufacturing growth.
As a result, PG&E recently submitted a proposal to the
California Public Utilities Commission for a streamlined,
transparent and equitable way to connect new electric retail
transmission customers like data centers and large tech
campuses.
Modeled after existing rules for distribution customers, the new
Rule 30 tariff clearly outlines the interconnection process,
cost requirements, and how customers can recoup their up-front
costs if the load growth materializes.
"Our large load customers have asked for the ability to fund
their projects upfront, which would help accelerate PG&E's
ability to serve them, and Rule 30 proposes just that. The premise
is to more efficiently and uniformly address these type of electric
service requests and improve PG&E's ability to meet customers
requested in-service dates by enabling them to fund their projects
upfront and get paid back after they come online. That way, our
existing customers benefit when the load comes in but are protected
from having to pay for infrastructure if the load doesn't
materialize on the expected time frame," Glickman explained.
PG&E anticipates the steady demand growth from its large
load transmission customers including data centers will help to
lower PG&E electric rates by spreading costs over more units of
energy and will improve reliability for all customers.
Visit www.pge.com/innovation to access PG&E's R&D
Strategy Report and learn more about PG&E's approach to serving
anticipated load growth.
PG&E is proud to serve as the host utility for the upcoming
DTECH Data Centers and AI conference May 27-29, 2025, in San
Jose, which will dive deeper into the topic of how utilities
are meeting artificial intelligence-driven data center load growth,
among others.
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 and pge.com/en/newsroom
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SOURCE Pacific Gas and Electric Company
