How Grid Efficiency Could Unlock up to US$170bn in Savings

A more efficient approach to using the US power grid is opening new opportunities for data centre operators, as fresh analysis highlights how unused capacity can lower costs and support growing digital infrastructure demand.

Analysis from The Brattle Group shows that improving how the grid is used, rather than expanding it outright, could reduce consumer electricity bills by between US$110bn and US$170bn over the next decade.

Much of the US power system sits idle for most of the year, as infrastructure is designed to meet short periods of peak demand.

This leaves large volumes of unused capacity that data centres and other energy-intensive operations can tap into, provided demand is aligned with when and where that capacity is available.

Brattle's report sets out how utilities can capture these savings by introducing new demand strategically and reducing pressure during peak periods through flexibility and efficiency measures.

Data centre demand meets unused grid capacity

Data centres are continuing to expand as cloud computing and AI increase electricity consumption. This demand often leads to delays in grid connections, as utilities plan and build new infrastructure to meet projected load.

The report presents an alternative. By focusing on existing system headroom, which is the spare capacity within the grid, utilities can connect new facilities faster and at lower cost. This essentially means shorter development timelines and reduced capital exposure linked to power availability for data centres.

Brattle finds that a 10% improvement in system utilisation reduces electricity rates by around 3.4%, given other conditions remain constant. Even modest reductions in energy pricing have a direct impact on operating margins, especially for hyperscalers.

Ryan Hledik, Principal at The Brattle Group, says: "Rising electricity rates and accompanying energy affordability concerns are a national challenge that utilities and energy regulators are under pressure to address.

"Making better use of the existing power system is a cost-effective solution to the problem, and our study quantifies the significant scale of the opportunity.

"Looking ahead, achieving these benefits will require thoughtful, system-specific initiatives that account for reliability needs, applicable regulatory structures and local conditions."

This approach shifts the focus for data centre developers. Instead of relying only on new builds, operators assess grid conditions, timing and flexibility options when selecting sites and planning capacity.

Lower costs and faster grid connections

The report compares two approaches to meeting rising electricity demand. In the traditional model, utilities expand infrastructure to support new load, increasing costs and placing upward pressure on electricity prices.

Under a utilisation-led model, new demand contributes to the cost of existing infrastructure. This reduces the burden on other customers and creates a more efficient system overall.

Facilities can come online years earlier by using available capacity rather than waiting for new grid investments. This is particularly relevant as demand for compute power continues to increase.

A range of technologies and strategies support this model. Distributed energy resources, along with energy storage and demand flexibility programmes, help balance electricity use across the network. Improved rate design and flexible interconnection policies also enable more efficient grid access.

These tools allow data centres to adjust consumption patterns, integrate on-site energy systems and align operations with grid availability, which strengthens both resilience and cost control.

Industry backing and long-term impact

The study is commissioned by the Utilize Coalition, created by Google, Tesla, Carrier, Renew Home, SPAN, Sparkfund and Verrus, alongside GridLab. 

Ian Magruder, Founder and Executive Director of Utilize Coalition, says: "Increasing grid utilisation is one of the most powerful levers America can pull to meaningfully reduce the increasing cost of electricity in the near-term.

"Policymakers from across the country are looking for new solutions to address energy affordability at this moment, and this report clearly illustrates the enormous potential of greater grid utilisation at scale."

Alongside cost savings, improved utilisation reduces the risk of stranded assets, which arise when infrastructure investments fail to match actual demand. Flexible energy resources scale more effectively, allowing utilities and large users such as data centres to adapt as requirements change.

This creates a more responsive energy environment for the data centre sector, where growth aligns with available capacity and long-term costs remain under closer control.