DOE Draft Says U.S. Grid Needs Major Transmission Expansion as Data-Center Demand Grows
The U.S. Department of Energy released a draft national transmission study July 9 that identifies a pressing need for more electricity infrastructure as data centers, domestic manufacturing and other large industrial loads increase demand on the power grid.
The draft 2026 National Transmission Needs Study was opened to a 60-day public-comment period. Comments are due Sept. 7, 2026, and the department said it may incorporate public feedback into the final study.
The document focuses on the national transmission system rather than a single state or locality. Its findings could influence how utilities, regional grid operators and policymakers plan for rising electricity use across the United States.
Demand is changing the transmission outlook
DOE said the analysis points to growing transmission needs tied to data centers, expanding domestic manufacturing, large industrial loads and broader economic growth. Those demands can increase the amount of power that must move across regions and can place new pressure on existing transmission capacity.
The study is intended to identify national transmission needs and opportunities. It does not itself authorize construction of a specific project or award funding for one. The draft designation also means the findings remain subject to the public-comment process and a future final study.
That distinction matters for consumers and communities watching proposed data centers, factories and other electricity-intensive developments. The study identifies planning pressures and potential high-value connections, but it does not mean that a particular transmission line has been approved because of the draft.
Regional links identified for further attention
DOE identified several interregional links as having high potential congestion value based on historical locational marginal prices. The areas and grid regions named in the analysis include WestConnect, the Southwest Power Pool, NorthernGrid, ISO New England and the New York Independent System Operator.
Locational marginal prices reflect the cost of supplying electricity at different points on a power system. In the study’s analysis, historical price differences were used to identify links that could have significant value for relieving congestion between regions. DOE’s description does not treat that potential value as a guaranteed economic benefit or as a final federal determination.
The broader regional landscape is already shifting. DOE said the Midcontinent Independent System Operator, Southwest Power Pool, PJM Interconnection and ERCOT have recently approved some of their largest transmission portfolios.
Those approvals provide context for the draft study’s focus on larger, more coordinated transmission planning. The study addresses a system that crosses regional boundaries, including areas served by MISO, SPP, PJM, ERCOT, ISO New England and NYISO.
What happens next
The immediate next step is the public-comment period, which ends Sept. 7. DOE said it may use the comments in preparing the final version of the study.
The draft is part of a wider federal focus on transmission investment. DOE has also announced an approximately $1.9 billion SPARK funding opportunity for reconductoring and advanced transmission technologies. The department said selections were anticipated in August 2026.
That funding opportunity is separate from the draft needs study. The study can help identify where transmission planning attention may be warranted, while the funding announcement concerns support for eligible grid infrastructure efforts. Neither development, as described by DOE, amounts to approval of every link identified in the draft.
For grid operators and large electricity users, the study’s significance is its timing: demand is growing in sectors that can require substantial power, while regional systems are making major transmission decisions. The final study and any later federal or regional actions will determine how the needs identified in the draft translate into specific planning, investment or construction decisions.
Sources
- DOE’s Office of Electricity Publishes 2026 Draft National Transmission Needs Study to Strengthen America’s Grid, U.S. Department of Energy
- Office of Electricity, U.S. Department of Energy
- Energy Department Announces $1.9B Investment in Critical Grid Infrastructure to Reduce Electricity Costs, U.S. Department of Energy
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