DOE Targets AI-Driven Power Demand With $1.9B Grid Upgrade Initiative
The U.S. Department of Energy (DOE) has announced a $1.9 billion grid upgrade program aimed at expanding transmission capacity, as rising electricity demand from AI and data centers strains the nation’s power infrastructure.
The program, announced on Thursday and administered by the DOE’s Office of Electricity, will fund projects that upgrade existing power lines and deploy advanced transmission technologies designed to increase the amount of electricity that can move across the grid without building entirely new corridors.
The initiative, called Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades, or SPARK, focuses in part on “reconductoring,” a process that replaces older transmission wires with newer, higher-capacity conductors that can carry more electricity along existing rights of way.
Energy Secretary Chris Wright said the effort is intended to speed up grid modernization while keeping electricity costs down for consumers.
“For too long, important grid modernization and energy addition efforts were not prioritized by past leaders,” Wright said in a statement announcing the program.
The funding opportunity builds on the Grid Resilience and Innovation Partnerships (GRIP) program created under the Infrastructure Investment and Jobs Act, which authorized up to $10.5 billion over five years to support projects aimed at strengthening grid resilience and innovation.
Under the newly branded SPARK program, the DOE said it will prioritize projects that can deliver upgrades quickly and expand the grid’s ability to move electricity between regions. The agency said reconductoring paired with other advanced transmission technologies could increase operational efficiency, improve reliability and expand transfer capacity while using existing transmission corridors.
The funding opportunity is organized around three categories. The first supports grid resilience projects that expand transmission capacity and reduce the likelihood or impact of disruptive events. The second focuses on smart grid technologies that enable real-time monitoring and optimization of grid assets. A third category targets large-scale transmission demonstrations designed to improve power transfer between regional planning zones and support new large electricity loads.
Eligible applicants include grid operators, transmission owners, electricity generators and storage operators for resilience projects; universities, private companies, non-profits and government entities for smart-grid projects; and state or regional authorities for large-scale grid innovation demonstrations.
Concept papers for the funding opportunity are due April 2, with full applications required by May 20. The Department of Energy said it expects to announce project selections in August, with awards anticipated between October 2026 and January 2027.
The program comes as U.S. electricity demand growth accelerates amid expanding data-center development, electrification trends and increasing industrial power consumption, placing new pressure on transmission infrastructure that in many regions was built decades ago. DOE officials said projects supported by SPARK will aim to expand grid capacity, improve reliability and lower costs by enabling more efficient use of existing transmission assets.
