Factor This PG&E defines a new utility model for data centers, onsite gas, and community connection
Jan 26, 2026
Austin Hastings, VP of Gas Engineering at PG&E, steers gas planning and emissions work. Mike Medeiros, VP of Strategic Commercial Solutions, leads interconnection and customer delivery. They discuss squeezing more grid capacity, renewable natural gas and hydrogen options, the risks of long-term gas investments for data centers, permitting and regulatory hurdles, and collaborative approaches with cities to move projects forward.
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Unlocking Existing Grid Capacity
- PG&E's grid averages ~45% utilization, leaving substantial spare capacity to serve new large loads like data centers.
- Technologies like SmartVal power-flow devices can unlock ~100 MW by redirecting power without immediate new lines.
RNG Needs Infrastructure To Scale
- Renewable natural gas (RNG) comes from landfills, dairies, wastewater and manufactured sources like food waste and woody biomass.
- Scaling RNG requires cleaning facilities and interconnections, so manufactured RNG and infrastructure are essential to lower costs.
San Jose Heat-Reuse Project
- San Jose’s downtown plan will capture data-center waste heat to heat nearby buildings and support a net-zero community.
- That project shows data centers can contribute positively to local decarbonization and services.