Massive Investments in Infrastructure:

The EEI report highlights a staggering $890 billion in publicly announced large load projects currently underway. These projects, representing nearly 55 gigawatts (GW) of connected load, are just the tip of the iceberg, with many more in the pipeline. Electric companies are collaborating closely with regulators and customers to strategically plan and build the necessary generation and transmission infrastructure to support this significant surge in demand over the coming decade.

Examples of Large Load Projects

Hyper Scalers are investing heavily in data centers across multiple states, including Ohio, Indiana, Alabama, Iowa, Wisconsin, West Virginia, Wyoming, Texas and many more. These projects often involve hundreds of megawatts of power and substantial long-term commitments.

Manufacturing Renaissance: From semiconductor manufacturing in Arizona and New York to battery production in North Carolina, Kansas, and Tennessee, a resurgence in American manufacturing is driving demand for reliable and affordable electricity. These facilities represent billions of dollars in investment and create thousands of jobs.

Steel and Aluminum Production: The resurgence of manufacturing is also reflected in the construction of steel and aluminum facilities, such as those planned in Louisiana and Oklahoma, respectively. These energy-intensive industries require significant investments in power infrastructure.

The Rise of Large Load Tariffs

To ensure that large load customers pay their fair share and that these projects benefit all ratepayers, state commissions are increasingly approving or considering specialized large load tariffs. As of May 2026, 23 states have approved at least one, with another 7 pending.

These tariffs often include key elements designed to mitigate risk and protect existing customers:

Eligibility Requirements: Defining the types of customers that qualify (e.g., minimum power demand) ensures the tariff is applied appropriately.

Contract Terms and Exit Fees: Long-term contracts and associated fees help reduce the risk of “stranded assets” if a customer leaves prematurely.

Minimum Billing Demand: “Take-or-pay” provisions ensure that large load customers pay for the capacity reserved for them, even if their actual usage fluctuates.

Financial Assurance: Collateral requirements or creditworthiness assessments ensure customers can meet their financial obligations.

Capacity Reassignment: Allowing customers to relinquish unused capacity enables utilities to repurpose infrastructure for other customers.

Benefits for All

While these large load projects are driven by the needs of specific customers, they can create substantial benefits for all electricity consumers. The EEI report highlights several examples:

Rate Stabilization: Several utilities have implemented rate freezes or expect to forego rate increases due to the increased revenue from large load customers.

Cost Savings: Agreements with large load customers can lead to significant savings for existing customers over the long term.

Grid Modernization: Investments in transmission and distribution infrastructure to serve large loads can improve grid reliability and resilience for all customers.

Clean Energy Investments: Some projects include commitments to procure renewable energy, helping utilities meet their clean energy goals.