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Artificial intelligence is reshaping the electricity system at unprecedented speed. From hyperscale data centers to electrified homes and industries, demand for power is accelerating just as customer bills rise and infrastructure investment reaches historic levels. Utilities are being asked to deliver more, faster, without compromising reliability, resilience, or affordability. 

These tensions framed the conversation at the NextGrid Alliance (NGA) 2026 Kickoff, where over 200 utility leaders and professionals came together virtually to explore a central question: how can we develop an affordable and flexible grid in the AI era? What emerged was a clear shift in perspective, flexibility is no longer peripheral. It is becoming foundational to how the grid is planned, built, and operated.

The scale and complexity of today’s challenges make one thing clear: no single utility, technology provider, or policymaker can solve them alone. The NGA exists to create a trusted, peer-utility collaboration platform where peers can openly share insights, test new ideas, and learn from real-world deployments. 

The NGA 2026 agenda reflects this urgency, focusing on three interconnected priorities: grid modernization, electric network build-out for large and fast-growing loads, and integrated energy planning. Across these areas, the discussion emphasized the need to move beyond incremental improvements toward coordinated approaches that align capital investment, operations, and customer outcomes. 

At the heart of this collaboration is a shared recognition that affordability and flexibility must serve as organizing principles. With unprecedented CAPEX ahead, utilities are increasingly focused on better utilizing existing assets, sequencing infrastructure more intelligently, and embedding flexibility into planning to protect customers from unnecessary cost increases. 

Utility collaboration for an unprecedented moment 

One of the most important reframings explored was the role of households in the future grid. Drawing on Rewiring America’s research, “Homegrown Energy: How household upgrades can meet 100 percent of data center demand growth”, the opening keynote highlighted that approximately 42% of energy-related emissions stem from household decisions, such as heating, cooling, and appliance choices. 

Rather than viewing households as passive consumers, the discussion positioned them as active grid infrastructure capable of supporting both affordability and capacity needs: 

Household upgrades could meet 50–100% of projected data center load growth nationally 

About 33% of this potential comes from replacing electric resistance heating with heat pumps 

Rooftop solar and storage could meet or exceed projected growth in some regions (e.g., Arizona) 

Participants also explored hyperscaler–utility partnerships to directly invest in household energy assets. By leveraging batched procurement and wholesale pricing, this model could deliver immediate bill savings while avoiding years-long infrastructure build-outs. 

Households as grid infrastructure 

AI data centers were another focal point of the discussion. Historically treated as inflexible demand, they are increasingly being viewed as potential grid assets when flexibility is designed in from the start. 

Emerald AI shared real-world demonstrations showing how AI workloads can dynamically adjust power consumption in response to grid conditions, without compromising performance: 

National Grid (UK): AI loads responding to system stress events 

Salt River Project (AZ): Flexible AI load integration 

Project Aurora (Manassas, VA): First NVIDIA AI factory with permanent flexibility, targeted for late 2026 

These examples suggest flexible AI data centers can: 

Enable faster time-to-power for hyperscalers 

As AI-driven load growth continues to accelerate, these early demonstrations suggest a path forward in which data centers evolve from being viewed solely as planning constraints to becoming active participants in grid operations. 

AI data centers as flexible assets 

Utility planning is becoming more difficult at precisely the moment when decisions matter most. AI-driven load growth, rapid electrification, aging infrastructure, and climate impacts are stretching traditional forecasting approaches to their limits. 

In the kick-off meeting, utility senior leaders emphasized the need for more granular, real-time data, scenario-based planning, and flexible solutions that can be deployed faster than long-lead infrastructure. Grid-edge resources, digital platforms, and operational flexibility are increasingly viewed as essential complements to traditional wires-and-pipes investments. 

At the same time, utilities are navigating a delicate balance between equity, affordability, and economic growth. Accommodating large new loads, such as AI data centers, must not unfairly shift costs onto existing customers. Transparent cost allocation, strong customer engagement, and maintaining reliability remain non-negotiable. 

A consistent theme throughout the discussion was that flexibility must be dependable to be valuable. To be incorporated into system planning, flexibility must be measurable, reliable, and operationally integrated. Voluntary or loosely defined programs are insufficient at the scale utilities now require. 

Planning amid uncertainty 

The NGA 2026 kickoff reinforced a growing consensus across the utility sector: meeting the challenges of the AI era will require rethinking where capacity comes from, how it is delivered, and how customers, technologies, and large loads participate in building the grid of the future. 

Through continued peer collaboration, real-world demonstrations, and focused working groups, NGA will continue to explore how affordability and flexibility can be embedded into grid modernization, electric network expansion, and integrated energy planning, helping utilities move faster, spend smarter, and deliver value to the customers we all serve. 

Looking ahead 

Shun Sakaguchi is a Manager of Innovation & Venture Acceleration at National Grid Partners, the venture investment and innovation arm of National Grid. He leads the NextGrid Alliance, which gives utilities and other industry stakeholders front-row access to technology advances. To stay informed on the latest in AI and other grid modernization topics, follow National Grid Partners or request to join the NextGrid Alliance.  

By Shun Sakaguchi, National Grid Partners

Developing an Affordable and Flexible Grid in the AI Era