Energy Department finalizes $3 billion loan to upgrade Texas grid for data center power demand

Published July 8, 2026 11:03am ET



The Energy Department has finalized a $3.26 billion loan for a subsidiary of utility giant American Electric Power to upgrade thousands of transmission lines across Texas, helping the state’s electrical grid supply energy to power-hungry data centers. 

The agency said it closed the loan with AEP Texas on Wednesday, marking the third time that its Office of Energy Dominance Financing has committed to supplying utility financing under President Donald Trump. 

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