Americans’ electricity costs rose by 30% between 2021 and 2025 and show no signs of going down. And with the war in Iran threatening the global oil supply, and data centers pushing up energy demands and prices, the cost of energy is almost guaranteed to increase even more.

In an unlikely collaboration, Google and Tesla are paying attention to Americans’ unease and sentiment. The two companies announced on Tuesday they are partnering to lower electricity costs and improve the efficiency of the electrical grid. The two Silicon Valley giants are joining HVAC powerhouse Carrier, data center builder Verrus, electrical panel startup Span, and energy distributors Renew Home and Sparkfund, to form a coalition called Utilize.   

“The time for greater grid utilization is NOW,” the coalition’s website reads, adding that the power grid needs to be “bigger and smarter at the same time.”

They argue that “underutilization” of the electric grid is the reason why electricity bills are so high. In a study of 22 regional electric systems, researchers at Duke University found a troubling statistic: most systems are handling a little more than half of what they’re capable of, operating at 53% capacity on average. The coalition sees battery storage and distributed energy resources as potential solutions, according to a statement released on Tuesday. 

“For decades, we’ve built the grid to meet peak demand, even though large portions of it sit unused for most hours of the year,” said Utilize Executive Director Ian Magruder in the statement. “It’s like building an airplane that only flies with full passengers a few times a year. That excess capacity is hiding in plain sight, and new technologies give us the opportunity to unlock it.”

Underutilization is a problem for companies like Google and Tesla, both of which are deeply invested in data centers to power their AI products. A typical AI-focused hyperscale data center, which hosts at least 5,000 servers, consumes as much electricity as 100,000 households in one year. 

Between 2020 and 2025, the centers have increased energy costs as much as 267% for some consumers in neighboring towns, according to a Bloomberg analysis. In 2024, data centers accounted for roughly 4% of U.S. electricity use, and that share is expected to more than double by 2030 as centers expand to accommodate more AI usage. 

“As demand grows, the priority has to be meeting new load without driving up costs for existing customers,” Ellen Zuckerman, who leads energy market development for North and South America at Google said in the statement. “Google is proud to support Utilize’s work to unlock underused capacity so growth in electricity demand translates into broader affordability and system benefits.”  

Utilize will be releasing new research conducted by consultancy firm The Brattle Group that shows Americans could save as much as $100 billion over a decade from their proposed system improvements.

A group is designed to be non-partisan and state-focused, according to the statement. They plan to work with governors, state legislatures, regulators, and utility companies to increase grid utilization. 

The coalition’s first win may be a grid-utilization bill in Virginia that some of the members backed. The bill has passed both legislative chambers and is awaiting Gov. Abigail Spanberger’s signature. The group is trying to pass similar bills in other states, according to the statement.