Copper thieves are quietly undermining efforts to build out America’s power grid for the artificial intelligence era, and the chief executive of one of the region’s largest utilities has been pressing for action to stop it. Ralph Izzo, who has led Public Service Enterprise Group (PSEG) since 2007, warned in a 2024 interview with CNBC that stolen copper wiring from construction sites for AI data centers is causing significant delays.
The material is needed for the installation of transformers and substations — the critical equipment that connects these massive computing facilities to the grid. The problem, Izzo explained, is that every stolen spool of copper wire ripples outward, pushing back transformer deliveries, then substation construction, and ultimately the timeline for new grid connections. Some projects have been delayed by as much as six months.
The Toll on Grid Modernization
PSEG is committing $2.5 billion to upgrade its network to handle the surging electricity demand from artificial intelligence data centers. The company serves 1.9 million electric customers and 1.8 million gas customers across New Jersey and parts of Pennsylvania, giving it a broad footprint where the strain is already being felt.
Copper theft is not a new crime, but the stakes have escalated sharply as utilities race to build infrastructure for data centers that consume enormous amounts of power. The consequence of each theft is a delayed transformer, a delayed substation, and a delayed connection to the grid, compounding the challenge of modernizing an aging energy system. Izzo has called for stricter state laws governing scrap metal sales, where stolen copper is often sold.
He has also pushed for increased federal oversight to crack down on the problem, arguing that metal theft is a low-risk, high-reward crime that flourishes without stronger enforcement. The scrap metal industry, however, has long resisted tighter regulations, contending that most sellers are legitimate.
The issue sits at an uncomfortable intersection: the promise of AI-driven economic growth, the reality of America’s overstretched energy infrastructure, and the persistence of a crime that undermines both.
A Career in Energy Transition and the Policy Battle
Izzo’s warnings carry weight in part because of his technical background. He holds a bachelor’s degree in mechanical engineering from the University of Notre Dame and a master’s in business administration from the University of Pennsylvania, credentials that inform his understanding of the grid’s vulnerabilities. Under his leadership, PSEG has shifted toward renewable energy, with particular emphasis on solar and offshore wind. That transition itself represents a massive infrastructure undertaking, and copper theft only complicates it further.
PSEG’s history traces back to the early days of electrification, when local providers consolidated to form larger, more stable energy networks. Over time, the company expanded and diversified, eventually embracing renewables.
Now, as the utility navigates the new demands of data centers, Izzo’s calls for action hinge on whether state legislatures and the federal government will respond. The pressure is building: AI data center construction is accelerating, and grid upgrades are already behind schedule. For PSEG, the $2.5 billion bet is that the grid can be modernized fast enough to meet demand.
Whether that pays off depends in part on whether the copper thieves can be stopped. The stakes for households and businesses are clear.
Delays in grid improvements can ripple across communities, affecting everything from household power reliability to the expansion of new technologies. PSEG’s efforts to modernize its network while addressing theft and policy gaps highlight the complex task of keeping energy flowing in an era of rapid change. The scrap metal industry’s resistance to tighter rules, combined with the urgency of AI infrastructure needs, leaves the outcome uncertain.
For now, Izzo continues to sound the alarm, urging state and federal officials to act before the grid’s bottlenecks become a permanent drag on economic growth.
