PUC: Pa. Electric Use to Spike Due to Data Centers

Electricity use in Pennsylvania is forecast to jump by more than 18% annually through 2030 primarily due to the growth in data centers, a new forecast indicates.

The Public Utility Commission released its annual Electric Power Outlook Report, which found that the state’s power needs could change substantially at the same time as the region is facing challenges in upgrading grid infrastructure and bringing new power generation online at the pace needed to meet the rising demand.

While the state’s total electricity consumption actually declined by 0.24% in 2025 from the previous year, forecasts from the state’s major electric distribution companies show a different scenario in the coming five years. Electricity usage for residential customers is expected to increase by 0.52% and commercial customers by 0.32%, but demand from industrial customers is forecast to jump by 18.56%. This is driven primarily by large load customers, most of them data centers. The largest growth is forecast in eastern Pennsylvania, served by PPL Electric Utilities, where industrial electric use could spike by more than 50% a year.

“Pennsylvania’s electricity needs have been relatively stable for years, but large new loads have the potential to fundamentally change that picture,” said PUC Chairman Steve DeFrank. “That makes accurate forecasting and careful planning more important than ever.”

The report emphasized that its forecast is not a guarantee of future demand, since large-load projects can change due to economic, supply chain, technological, and policy factors. However, it does reflect what is being seen across the commonwealth as data center developers and large tech companies scramble to find locations in the state and to lock up adequate power supplies for the energy-intensive facilities.

PJM, the regional transmission organization responsible for overseeing the Mid-Atlantic electric grid, continues to work to quickly address the rising demand by bringing new generation online and upgrading infrastructure. Still, the North American Electric Reliability Corp.’s most recent assessment found that PJM’s anticipated reserve margin of electricity could fall below requirements in 2029, potentially jeopardizing reliability. Regulators and lawmakers also continue to wrestle with questions about how the cost of these upgrades should be allocated so that residential utility bills do not continue to escalate.

The PUC report emphasized that it is increasingly important for regulators to understand not only how much electricity will be needed, but where and when that demand could arise to stay ahead of generation and infrastructure needs.