Can America keep the lights on? What needs to happen to modernize the grid

Can America keep the lights on? What needs to happen to modernize the grid

As artificial intelligence accelerates innovation and electric vehicles shift from novelty to norm, the United States is on the brink of an energy transformation. Over the next 25 years, electricity demand is projected to climb by more than 50%, fueled by the widespread electrification of industries, transportation, and daily life.

This surge in demand signals exciting progress, but it also raises an urgent question: Can the nation’s aging power grid keep up? A compelling October 2025 visual report from ELSCO Transformers highlights both the incredible potential of this electric future and the infrastructure challenges we must address to get there.

From data centers and EV charging stations to clean energy initiatives, America’s growing appetite for electricity is driving conversations about infrastructure investment and planning.

AI Alone Could Break the Grid

One of the biggest drivers of this new demand? Artificial intelligence. While AI is revolutionizing industries and boosting productivity across the board, it’s also becoming a major energy consumer. Each server request can require four to five watt-hours of electricity, a small number on its own, but when multiplied by billions of daily interactions, the impact quickly scales.

In fact, AI-related server usage is expected to consume 15 million megawatt-hours annually by 2027, enough to power millions of American homes every year. This rapid growth underscores the urgent need to build a grid that can keep pace with innovation.

Much of the US Grid Is Decades Past Its Prime

Part of the challenge lies in the age of the infrastructure itself. According to the report, nearly 70% of power transformers and transmission lines are more than 25 years old and rapidly approaching the end of their usable life.

Much of the U.S. grid was originally designed in the 1950s through the 1970s, long before today’s energy demands were even imaginable.

Now, with more than 60,000 miles of transmission lines already running at full capacity, the system is stretched thin, raising questions about the need for upgrades.

Fixing It Could Cost $5T, But Inaction Will Cost More

Looking ahead, meeting the projected demand of 5,178 terawatt-hours by 2050 will require more than just innovation; it will require massive investment.

The cost of replacing and upgrading the nation’s power infrastructure is estimated at a staggering $5 trillion, driven by rising material prices, supply chain pressures, and long lead times for essential components like transformers.

It's a daunting figure, but it’s one that reflects the scale of transformation needed to build a grid capable of powering the next generation.

Interconnection Queues Are a Major Bottleneck

Even promising solutions like renewable energy, often seen as the key to a cleaner, more sustainable future, are facing significant hurdles. Despite widespread support, nearly 80% of proposed power generation projects are being delayed or canceled due to interconnection queue bottlenecks and regulatory backlogs.

These slowdowns are preventing clean energy from reaching the grid at the pace required, underscoring the need for streamlined processes and faster approvals if we’re serious about meeting tomorrow’s energy demands.

Industry Recommendations

To meet these challenges head-on, the report outlines a three-pronged strategy for building a more resilient and future-ready grid:

• Diversify energy sources: Industry proposals include quadrupling the share of federally sourced renewable energy by 2035, reducing reliance on aging fossil-fuel infrastructure.
• Accelerate interconnection: The report recommends doubling the speed at which new energy projects, especially renewables, are connected to the grid, cutting through red tape and backlogs.
• Streamline equipment manufacturing: Another proposal involves prioritizing high-availability components with faster production, shorter shipping times, and long-term warranties to minimize delays and downtime.

These proposals represent one practical roadmap for powering America's electric future sustainably, securely, and at scale.

The bottom line? The U.S. doesn’t have an energy shortage; it has an infrastructure bottleneck. With 2.6 terawatt-hours of generation capacity currently sitting idle due to outdated systems and regulatory delays, the potential is already there.

This story was produced by ELSCO Transformers and reviewed and distributed by Stacker.