March 12 (Reuters) - The U.S. Department of Energy will invest about $1.9 billion to accelerate upgrades of power grids in the country, it said on Thursday.

U.S. power consumption is set to rise sharply this year and the next, driven by rapid growth in AI and cryptocurrency data centers and increased electrification of heating and transport. However, that demand has also led to higher electricity prices for a large swath of the country.

The DOE said the funding would be used to prepare for the rise in demand and to lower electricity costs for American households and businesses.

The selected projects for the funding will need to showcase how reconductoring or replacing existing power lines with higher-capacity conductors, combined with transmission technologies, can bolster the nation's electric grid.

Utilities are adding power lines and other components to the grid as data centers lift U.S. electricity consumption out of two decades of flat demand.