Xcel Energy Seeks Massive Power Expansion
The explosive growth of data centers across the U.S. — including Oklahoma — is reshaping how utilities plan future power generation. One of the biggest examples is Xcel Energy, which recently told Colorado regulators it needs to invest $22 billion to meet new electricity demand.
That demand is largely driven by AI-powered data centers planned for the corridor between Denver and Aurora, an area nicknamed Data Center Row. Xcel currently operates 6.2 gigawatts of generation in Colorado but said new projects will add 5.8 gigawatts — enough to power over 3 million homes.
Regulators Question the Forecast
Members of the Colorado Public Utilities Commission voiced doubts about Xcel’s projections. Commissioner Megan Gilman described the load forecast as “massive” and “far from certain,” while cautioning that utilities must plan carefully to avoid creating stranded assets.
“This is a really massive load forecast far in excess of what we’ve seen on the system,” Gilman said during an August meeting.
Consumer Advocates Warn of Rising Costs
Consumer advocates are worried about who will pay for the expansion. Colorado Energy Consumers (CEC), which represents Xcel’s largest customers, filed comments warning that ratepayers could shoulder the costs of unused infrastructure.
“Without caution, ratepayers face significant risk of bearing the costs of stranded assets,” CEC said in its filing.
Oklahoma’s Energy Perspective
Oklahoma analysts are watching closely. The state already hosts major Google and Microsoft data centers, which depend heavily on stable and affordable energy. Utilities in Oklahoma could face similar challenges balancing economic development with grid reliability and ratepayer protection.
The AI and data center boom continues to test how far U.S. utilities can stretch existing power systems without overloading customers.
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