History may not always repeat itself, but it often rhymes, and the current state of America’s infrastructure investment echoes past eras that propelled the nation forward. Just look back at James Monroe, Abraham Lincoln, and Dwight D. Eisenhower; their initiatives in building roads, railways, and highways sparked significant economic growth. Today, the U.S. finds itself at a crossroads again, with infrastructure investment poised to play a crucial role in overcoming a slew of pressing challenges.
The competition with China in the realm of artificial intelligence is straining the U.S. power grid, leading to delays in getting new data centers online due to inadequate connections to power generation. On top of that, persistent inflation and widening wealth gaps are leaving many Americans struggling to pay their bills. Extreme weather events have further exacerbated the situation, leaving millions without power and disrupting operations at military bases. The common thread? A glaring lack of adequate transmission lines connecting America’s fragmented power grids, which is driving energy costs up and keeping consumer savings at bay.
The incoming Trump administration has recognized this critical issue, promising to halve energy prices in 18 months. While that’s an ambitious goal, there’s a clear path forward through public-private collaboration to revitalize America’s infrastructure. First off, streamlining federal permitting rules is essential. To achieve energy dominance, the U.S. must maximize access to low-cost domestic energy production. Speeding up the permitting process for transmission lines would empower private developers to complete new lines, ensuring lower-cost, reliable power, especially during severe weather events. Recent storms have shown that larger grids can weather the storm better, quite literally.
Next, let’s talk about maximizing existing rights-of-way to bolster American manufacturing and data centers. The Department of Energy’s Grid Deployment Office has already accelerated investment in grid-enhancing technologies and high-performance conductors, which can rapidly add capacity to the existing grid. For instance, federal grants are enabling Georgia Power to deploy these technologies, creating jobs and significant economic impact in the process. Other regions could benefit from similar investments, creating a ripple effect of economic growth.
Another critical action involves regulatory reform to facilitate efficient power transfers between grid regions. Optimizing existing interties—those crucial connection points between regional power markets—could save businesses millions annually. For two decades, regional market monitors in New England, New York, and the Mid-Atlantic have been advocating for these reforms. The savings are real; optimization in the West has already saved consumers over $4 billion from 2014 to 2023, and similar strategies in the East could yield an additional $50-60 million a year.
Finally, there’s a bipartisan opportunity to boost energy security and domestic manufacturing. Encouraging the development of American-made electric transformers and components for high-voltage lines is essential, especially as competitors like China and the EU are aggressively modernizing their grid infrastructures. With China already boasting 34 ultra-high voltage lines and Europe planning approximately 130 gigawatts of new high-voltage direct current lines, the U.S. cannot afford to lag behind.
History teaches us valuable lessons about the consequences of neglecting infrastructure at critical junctures. The Hapsburg Empire’s reluctance to embrace railway advancements stunted its economic growth for decades. While the U.S. is not a monarchy, we face similar perverse incentives today, with significant new interregional transmission projects stalled despite their potential to boost the economy and ensure reliable power service.
The new leaders have a clear opportunity to change this narrative. By enabling the completion of just 36 shovel-ready high-capacity transmission projects, America could unlock 1.3 million jobs. Let’s not repeat the mistakes of the past; instead, let’s draw on the lessons from Monroe, Lincoln, and Eisenhower to script a new chapter of prosperity in America’s history. A stronger grid infrastructure, powered by our most affordable, reliable, and clean technologies, stands to benefit us all.
