Ageing Southern U.S. grid struggles amid data boom
Ageing infrastructure threatens power supply as data center growth accelerates across Georgia, South Carolina, and beyond.

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USA: A wave of new reports warns that the Southeast U.S. is becoming a weak link in the national power grid, as ageing infrastructure buckles under the weight of rapid data center expansion and economic growth.
Analyses from The Brattle Group, the Southern Renewable Energy Association, and others highlight how grid fragility threatens to derail investment in states like Georgia, South Carolina, and Tennessee – key targets for large-scale data center projects by firms such as EdgeConneX, Vertiv, and Elon Musk’s xAI.
The American Society of Civil Engineers gave the nation’s energy infrastructure a D+ in its 2025 Report Card, citing poor reliability. Rising energy demand from digital infrastructure is set to more than double from 17 GW in 2022 to 35 GW by 2030.
Some operators are already turning to on-site generation, sometimes pushing regulatory limits. Counties in Georgia have imposed moratoriums on new centers due to grid strain, water usage, and tax concerns.
Experts call for urgent investment, including doubling national transmission capacity and enhancing interregional connections to stabilize supply, integrate renewables, and meet 24/7 energy needs.
“This is not just about one issue, it is a system under stress,” said Simon Mahan of SREA. “To power our future, we must invest in the grid now.”
Source: Capacity
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