MISO Expects Load to Jump 35% by 2035 on Data Center Growth

Why It Matters

The surge in data‑center power use will reshape regional grid planning, strain existing infrastructure, and force utilities to rethink risk management and investment strategies. Accurate forecasting is critical to avoid stranded assets and ensure reliable, affordable electricity as the digital economy expands.

Key Takeaways

• Data centers could consume 20% of MISO electricity by 2030
• MISO forecasts peak load 163 GW by 2035, 35% increase
• Forecast uncertainty tied to AI profitability and project transparency
• Utilities urged to adopt dynamic planning for speculative load
• High‑confidence projects require interconnection agreements and active construction

Pulse Analysis

The United States’ power grid is entering a new era where data‑center demand, fueled by AI workloads and cloud services, rivals traditional load drivers. MISO’s latest long‑term forecast highlights a 35% jump in peak demand by 2035, underscoring how digital infrastructure is becoming a core electricity consumer. Compared with other regional operators, MISO’s central states—Illinois, Indiana, and Michigan—are poised to see the steepest growth, outpacing the northern and southern zones that are expanding at roughly 2.6% and 1.9% annually.

For utilities, the forecast translates into heightened exposure to load volatility and the risk of stranded generation assets. Industry experts, like EY’s Stephanie Cutter, recommend that utilities tighten contractual commitments from hyperscalers, increase deposits, and employ dynamic planning tools that differentiate speculative projects from those with firm interconnection agreements. This approach helps mitigate the uncertainty stemming from limited data transparency, opaque project pipelines, and the rapid evolution of AI‑driven workloads, ensuring that capacity investments align with actual demand.

Looking ahead, policymakers and grid operators must prioritize data visibility and a centralized clearinghouse to improve forecasting accuracy. Integrating more renewable resources will be essential to meet the additional 42 GW of demand without exacerbating emissions. As MISO prepares its 2026 long‑term forecasting white paper, stakeholders will watch for guidance on how to balance aggressive data‑center growth with grid reliability, cost‑effectiveness, and sustainability goals.