The US Department of Energy (DOE) has announced $1.9 billion in funding for 31 grid improvement projects across 26 states, aimed at accelerating power connections for data centers and other large l...

DOE Announces $1.9bn for 31 Grid Projects to Accelerate Data Center Connections

Abdul-Rahman Oladimeji

Abdul-Rahman Oladimeji

September 25, 2026

The US Department of Energy (DOE) has announced $1.9 billion in funding for 31 grid improvement projects across 26 states, aimed at accelerating power connections for data centers and other large loads.
The projects are part of the DOE’s SPARK initiative and will receive $5.25 billion in total, including $3.35 billion in recipient cost-sharing. The DOE estimates the projects could unlock more than 23GW of additional grid capacity. Work will include advanced conductor upgrades, grid enhancing technologies, and major transmission projects covering more than 1,500 miles of lines.

“Today’s announcement reinforces the Trump Administration’s commitment to commonsense energy addition policies that lower electricity prices and strengthen our grid,” said US Secretary of Energy Chris Wright. “These investments will get more out of the infrastructure we already have, move more electricity across the grid, and help deliver affordable, reliable, and secure power that will fuel American prosperity for decades to come.”

“These selected SPARK projects put advanced transmission technologies to work, modernizing critical infrastructure, maximizing the capacity of existing lines, and unlocking more than 20GW of additional grid capacity,” said  Office of Electricity Assistant Secretary Catherine Jereza. “DOE is moving with urgency to strengthen our grid, lower costs, and ensure America has the energy infrastructure needed to power the next generation of economic growth.”

Among the projects aimed at supporting data center growth is Alabama Power’s Northeast Alabama Smart Grid Deployment, which received $50 million to upgrade transmission lines and deploy advanced transmission technologies. Entergy Mississippi will also receive funding for a three-state smart-grid project across Arkansas, Louisiana, and Mississippi, designed to increase transmission capacity for data centers and other industries. The DOE has published the full list of funding recipients.Yelantsevv.width-358.webp


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