DOE Launches $5.25 Billion SPARK Initiative to Upgrade Power Grid
The U.S. Department of Energy launched a $5.25 billion program to modernize the power grid and meet surging electricity demand from AI data centers.
The U.S. Department of Energy launched the SPARK initiative, a $5.25 billion investment program designed to modernize the national power grid and increase electricity capacity. The program provides $1.9 billion in federal grants matched by $3.35 billion in recipient cost-sharing. Energy Secretary Chris Wright announced the initiative in Allentown, Pennsylvania, stating the funds will support 31 projects across 26 states to add over 23 gigawatts of capacity—enough to power 16 million homes.
The initiative focuses on upgrading existing infrastructure rather than building new lines, utilizing sensors and real-time weather monitoring across nearly 21,000 miles of the grid and rebuilding over 1,500 miles of transmission lines. These upgrades aim to prevent blackouts caused by the rapid expansion of artificial intelligence data centers. While the Trump administration is prioritizing this growth, the funding originates from a bipartisan infrastructure law enacted under former President Joe Biden.
Major funding recipients include Ohio, which received $273 million, and Indiana, which was awarded $175 million to improve regional grid connections. Other significant awards include $50 million to Duke Energy for projects in South Carolina and North Carolina, and funding for the Three Corner Connectors project in Oklahoma City. Officials stated the upgrades will reduce system congestion costs and lower electricity bills for approximately 100 million Americans.