How Exelon is Preparing the Grid for AI and Data Center Growth

By Albaraa Fahmy

Artificial intelligence is driving the largest increase in electricity demand in decades, creating new opportunities for innovation, economic growth and investment. But that same growth is causing anxiety for families and small businesses. They worry about the cost of energy and the effects of the data center buildout on the environment. That's why energy affordability and sustainability remain at the heart of every decision we make. 

During a Climate Week discussion hosted by the Atlantic Council, Exelon CEO Calvin Butler explained how we work with communities to enable data center development while approaching our infrastructure projects thoughtfully and responsibly.

“Communities need to feel as if it is done with them instead of to them,” Butler said of data center growth.

Protecting customers as data centers grow 

The speed and scale of today’s electricity demand growth are unlike anything the industry has seen in decades. As Exelon prepares for that increased growth, Butler said any of Exelon’s changes to the grid will be methodical and deliberate. 

“Thoughtful doesn’t mean slow. It has to be very intentional,” he said. Intentional growth means distinguishing projects that are ready to move forward from those that remain uncertain, helping Exelon plan for future demand while protecting customers from unnecessary costs. 

Exelon’s innovative Transmission Security Agreements (TSAs) — customer protections that require financial commitments from developers that help Exelon determine which large new energy projects are ready to move forward — hold data center developers accountable. TSAs are a key component of the Exelon Promise, and they ensure customers aren't left holding the bag if a project is canceled or uses less electricity than expected. 

“We want to protect the homeowners and small businesses so that they do not end up carrying that burden in case that load never materializes,” Butler said. 

Balancing reliability, affordability and sustainability 

While affordability remains a central focus, Butler emphasized that utilities have an opportunity to meet rising demand while continuing to support long-term sustainability goals.

Exelon’s utilities continue to invest in infrastructure that supports renewable energy resources and a more flexible electric system. In 2025, Exelon’s utilities connected more than 304,000 customers with nearly 5,000 megawatts of renewable energy resources. 

Exelon also remains committed to its Path to Clean strategy, which focuses on reducing emissions from company operations while continuing to provide safe, reliable and affordable energy service. 

As discussions continue beyond Climate Week NYC, one thing is clear: As we enter this new era of demand on the electric grid, affordability, reliability and sustainability are not competing priorities. Exelon is working to advance them together.

“I do believe when done well, responsible growth, responsible development can benefit everyone,” Butler said.