Infrastructure in focus: Large-load demand = large-load tariff

Large-load electricity demand, driven by data centres, is forcing US utilities and regulators to adopt dedicated tariffs that make major customers fund their share of the required infrastructure.

• As at July 2026, EEI estimated more than US$950 billion of announced US large-load projects, representing over 61 GW of connected load; Magellan says this may cover only part of the investment and generation pipeline.
• Approved large-load tariffs in the US during 2026 year-to-date were already comparable with the full-year 2025 total, while many additional proposals were awaiting approval in the second half of 2026.
• Activity was very limited from 2018 to 2024, indicating a sharp acceleration in tariff development alongside the recent surge in data-centre and other large-load projects.
• Large-load tariffs are designed to make major customers pay for their share of new capital expenditure, while utilities, regulators and customers coordinate the generation and transmission capacity required.
• At present, 24 US states have approved at least one large-load tariff, and household affordability concerns make customer segmentation increasingly politically important.

Takeaway: Investors in regulated utilities should monitor large-load tariff approvals because they can influence customer pipelines, billing, capital expenditure and earnings outlooks; Magellan expects these tariffs to become more common as data-centre development continues, although the timing and implementation depend on regulators and customer cooperation.