PG&E Undergrounds 1,000 Miles, Eyes 10 GW Data-Center Demand Spike
PG&E’s shares trade near $16.28 with a forward P/E of 10.02, reflecting a valuation discount from lingering wildfire liability concerns. The utility has undergrounded 1,000 miles of lines, added thousands of sensors, forecasts up to 10 GW of new data-center load, and awaits a CPUC rate decision for 2027–2030.
1. Valuation and Wildfire Discount
PG&E shares trade around $16.28 with a forward P/E of 10.02, trading at a discount driven by ongoing concerns over wildfire liabilities tied to past bankruptcy and regulatory scrutiny.
2. Wildfire Mitigation Progress
The company has completed approximately 1,000 miles of line undergrounding as of Q3 2025, deployed thousands of sensors and insulated conductors, and reinforced poles to lower ignition risk and enhance grid safety.
3. AI Data-Center Load Growth
Emerging secular demand from AI-driven data centers could add up to 10 GW of incremental load over the next decade, boosting grid utilization, supporting higher returns on invested capital, and stimulating regional economic activity.
4. 2027–2030 Rate Case Catalyst
PG&E has filed for a modest revenue increase in its next General Rate Case, with clear cost justifications for wildfire mitigation and grid upgrades, positioning it for a potentially constructive CPUC decision in early 2027.