The US is investing $22 billion to build nearly 1,000 km of national power transmission grid.

Energy Secretary Jennifer Granholm said the funding was crucial because extreme weather events caused by climate change are increasing, damaging power towers and lines, leading to power outages.

For example, Hurricane Beryl, which struck Texas on July 8th, left nearly 3 million people without power. Officials said at least a dozen Houston area residents died from complications related to the heat and power outage.

According to the U.S. Department of Energy, this investment will provide reliable, affordable electricity to 56 million households and businesses. Granholm said this is the largest direct investment ever made in the national power grid.

“They will help us meet the needs of electrified households and businesses, new manufacturing facilities and all the growing data centers, which are placing a huge demand on the transmission grid,” Granholm said at a press conference announcing the funding.

This is the second round of funding through the U.S. Department of Energy's $10.5 billion Grid Innovation and Resilience Partnership program. This program is funded through the Local Infrastructure Act of 2021. Further projects will be announced this fall.

Among the projects funded this time, more than 160 km of transmission lines in California will be upgraded to quickly add new renewable energy and meet growing electricity demand. A project in New England will upgrade onshore connections for electricity generated by offshore wind turbines, allowing for the addition of 4,800 megawatts of wind power, enough to power approximately 2 million homes.

The Montana Department of Commerce will receive $700 million. The majority of this money will be used to construct a 668-kilometer-long, high-voltage, direct current transmission line across Montana and North Dakota. The North Plains connection will increase the ability to move electricity from east to west and vice versa, while also providing protection against extreme weather and power outages.

The Virginia Department of Energy will receive $85 million to utilize clean electricity and clean backup power at two data centers, one in the state and one in South Carolina.

The U.S. Department of Energy selected this project because the data centers will respond to the grid in a novel way: They can supply the necessary power to the local grid on hot days, from backup batteries, or reduce energy use during peak hours. According to the Department, this could serve as a model for other data centers to minimize their impact on the local area, as they place very high demands on the grid.

“These investments are definitely a step in the right direction and they are the right kind of investments… If you look at the scale of the challenge and the amount of grid capacity needed to achieve deep emissions reduction and net zero emissions, this is just a small fraction, ” said Max Luke, Director of Business Development and Legal Affairs at VEIR, a Massachusetts-based firm.

According to Princeton University's "Net-Zero America" ​​study, the United States will need to expand its power transmission system by approximately 60% by 2030 and potentially triple it by 2050.