Existing power plants are ‘bedrock’ in supplying data centers: Constellation CEO

The rise of AI data centers is putting new pressure on the electric grid, and one of the country's biggest power plant owners says old plants, not new ones, will carry the load for now. Constellation Energy's CEO, Joseph Dominguez, said existing power plants, including the company's large nuclear fleet, will serve as the main power source for data centers in the near term, rather than waiting years for new plants to be built. He said the grid mostly has enough power except during a handful of peak demand hours each year, which utilities can manage with batteries and other backup resources.

This matters for homeowners because it points to how the growing demand from data centers could affect local electricity costs and grid reliability. In Texas, regulators recently paused approvals for new large power users like data centers so the state could review their expected power and water use. Constellation expects that pause to be short. The company also expects Texas electricity prices, currently low, to rise again as more data centers come online and demand grows.

None of this changes rebates or upgrade programs available to homeowners right now. But it is a sign that regions with heavy data center growth, including Texas and other states served by large utilities, may see shifts in electricity supply and pricing over the next few years. Homeowners weighing electric upgrades like heat pumps or home batteries may want to keep an eye on how their local utility and state respond to this growing demand.