US Grid Faces Historic Overhaul: USD 42 Billion in Transmission Plans Target Data Center Boom

Mar 13, 2026

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As the United States grapples with a surge in electricity demand from data centers and a rapid expansion of renewable energy projects, the nation's aging grid infrastructure is facing unprecedented strain. In response, major regional transmission organizations (RTOs) have unveiled ambitious 2025 transmission plans totaling over USD 42 billion, marking a historic push to modernize and expand the country's high-voltage backbone.

 

The primary bottleneck for new energy projects has become the interconnection queue-the process by which developers apply to connect to the grid. According to the Federal Energy Regulatory Commission (FERC), wait times from initial application to commercial operation have ballooned to as long as five years . The core challenge lies in the fact that the need for transmission line upgrades, required to connect new projects, is vastly outpacing the actual construction of those upgrades. In response, FERC's landmark Order No. 2023, enacted in July 2023, initiated a series of reforms designed to reduce project backlogs, streamline coordination between transmission providers, and facilitate the integration of new technologies .

 

Driven by soaring demand, grid operators are now approving large-scale transmission investments at an accelerated pace. The combined 2025 plans from the Midcontinent Independent System Operator (MISO), the Southwest Power Pool (SPP), and PJM Interconnection represent a collective investment of approximately USD 42.2 billion.

 

MISO: Building a Backbone for the Future

MISO's 2025 Transmission Expansion Plan (MTEP25) includes 432 projects, encompassing 1,901 miles of new transmission lines and accommodating 11.6 GW of new large loads [Reference article]. The planning also includes 49 Expedited Project Review (EPR) requests.

 

Furthermore, MISO's Long-Range Transmission Planning (LRTP) continues to advance. The Tranche 2.1 portfolio, focused on the MISO Midwest subregion, includes 24 projects and 323 facilities with an estimated investment of USD 21.8 billion. This portfolio aims to construct a 3,631-mile backbone of 765 kV and 345 kV lines, with an expected in-service date between 2032 and 2034 [Reference article].

 

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SPP: Preparing for Demand That Could Double

The Southwest Power Pool (SPP) approved its 2025 Integrated Transmission Plan (ITP) in November 2025, with a total project value of USD 8.6 billion . The plan adds 50 new transmission projects, including 949 miles of new 765 kV lines and 62 miles of new 345 kV lines [Reference article].

This investment is critical as SPP forecasts electricity consumption across its 14-state region could double over the next decade . The plan is designed to address rising demand, integrate new technologies, and enhance reliability in the face of extreme weather.

 

PJM: Massive Upgrades for the Mid-Atlantic

PJM Interconnection has approved a landmark USD 11.8 billion in baseline transmission projects as part of its 2025 Regional Transmission Expansion Plan (RTEP) Window 1 [Reference article]. These projects will drive major grid upgrades across the mid-Atlantic and Midwest regions.

 

Key projects include:

A USD 4.8 billion project by Dominion Energy, featuring a 185-mile, 525 kV high-voltage direct current (HVDC) underground transmission line from Brunswick County to Loudoun County, Virginia, along with two converter stations [Reference article].

A USD 1.7 billion, 221-mile, 765 kV transmission line across central Pennsylvania, proposed by NextEra Energy Transmission and Exelon [Reference article].

A USD 1.1 billion, 300-mile, 765 kV transmission line in central Ohio by Grid Growth Ventures [Reference article].

 

Summary

In total, MISO, SPP, and PJM have planned a collective transmission budget of USD 42.2 billion (approximately 290 billion RMB). A significant portion of this budget is dedicated to constructing 765 kV extra-high voltage transmission lines, underscoring the industry's commitment to building a more robust and resilient grid capable of meeting the nation's future energy needs.

Source information compiled from public reports by MISO, SPP, PJM, and the Federal Energy Regulatory Commission (FERC).

 

 

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