According to the authors of the newly released report, the vast majority of proposed pumped storage hydropower is concentrated in the Western United States because that region faces a unique combination of surging electricity demand and the rapid retirement of traditional power plants. These projects are strategically positioned to provide 24/7 reliability for new technology hubs while overcoming local power line congestion that currently blocks energy from reaching major cities.
The report notes that 85 percent of these projects “are located in the West where the power is needed most” and are situated “along transmission corridors already identified by the Department of Energy as chronic congestion points.”
In plain terms, the West needs a lot more electricity to run data centers and factories, but it is losing the steady power plants it used to rely on. Because new sources like wind and solar do not produce power all the time, and the current electrical grid is often too “clogged” to move power to where people live, these massive water-based storage systems are being built to act as batteries that keep the system stable and reliable.
The report “Winning the AI Race: Tapping into Pumped Storage Hydropower” was published by the National Hydropower Association in March 2026. Produced by the association’s policy experts in Washington, D.C., the document provides a strategic roadmap for leveraging long-duration energy storage to meet the surging power demands of data centers and advanced manufacturing.
