PG&E data center pipeline more than doubles to 12.7 GW compared to last quarter, with 1.8 GW expected operational by 2030.

California’s primary electrical utility, PG&E, reported that its pipeline of proposed data centers more than doubled to 12.7 gigawatts (GW) at the end of the second quarter, rising from 5.1 GW in its first-quarter results. According to its Q2 report, PG&E expects 1.8 GW of this capacity to reach operational status by 2030.

The most significant expansion occurred among projects that have applied for study and paid the initial fee. The utility now tracks 26 projects in this category, representing a combined 8.2 GW, compared to 1.7 GW in Q1. However, only four projects—totaling 490 MW—have secured interconnection construction agreements, an increase from 140 MW.

PG&E Chief Executive Patricia Poppe acknowledged that not all proposed projects will ultimately proceed. “We learn more every day about which of these projects are the highest quality. I think there are a couple of factors that will drive the quality. I do not think we can predict today which of them will flow all the way through. We know they will not all, but the number one criterion is that they must be rate-reducing,” she said.

The utility estimates that each additional gigawatt added to its pipeline could lower customer electricity bills by one percent or more, though outcomes may “differ materially” depending on the pricing structures and rate designs applied to large electricity consumers. To manage this influx, PG&E has tightened entry requirements for preliminary and final engineering phases. Projects reaching the final stage must now provide a signed work performance agreement and a financial commitment typically equivalent to approximately 10 percent of the total project cost.

PG&E maintains that it remains focused on pricing data center loads attractively while ensuring these projects reduce rates for broader customer bases. In 2025, the utility has made several notable industry announcements. Earlier this year, it signed a first-of-its-kind Implementation Agreement with the City of San Jose to streamline and guarantee power delivery for data centers and other large-load customers. Additionally, PG&E recently partnered with smart transmission provider Smart Wires on a new initiative designed to enhance grid reliability and accommodate growing data center energy demand in San Jose.