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On Fri, 14 Mar, 8:06 AM UTC
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CERAWEEK Data center build-out stokes fears of overburdening biggest US grid
HOUSTON, March 13 (Reuters) - The rapid development of AI data centers is intensifying concerns about how well an aging U.S. electrical grid can hold up to that demand, energy executives and regulators said at the CERAWeek conference in Houston this week. The build-out of Big Tech's giant computer warehouses, which at a single site can consume as much power as a mid-sized U.S. city, is propelling U.S. electricity consumption to record highs. Government agencies project data center demand will triple within the next three years, consuming 12% of the entire U.S. power supply. "What we're seeing today is unprecedented growth and the challenges the grid is facing are getting more pronounced," Samir Vora, a senior power generation executive at Mitsubishi Power Americas, said in an interview. Even as electricity demand swells, generators that run on fossil fuels are retiring. New generation and power lines often toil for years in interconnection queues, tightening the delicate supply-demand balance needed to avoid blackouts. "When it comes to the reliability of the electric grid, we have a rendezvous with reality," Mark Christie, who leads the Federal Energy Regulatory Commission (FERC), said at the conference on Thursday. Christie said that reality has become the most stark in the country's biggest electrical grid, PJM Interconnection, which covers 13 states and the District of Columbia. PJM's service area has the world's largest concentration of data centers, with member state Virginia routing about 70% of global internet traffic through the state. In its latest capacity auction, PJM announced prices that were more than 800% higher than the previous year, with the grid operator citing rising demand and shrinking supply. "I'm optimistic that this is a solvable problem but it is certainly not a trivial problem," Manu Asthana, CEO of PJM, said on a panel discussion. PJM projects its peak demand to grow from 152 gigawatts to 184 gigawatts by 2030, with nearly all of the additions coming from data centers, Asthana said. Without the quick addition of new power supply, supply and demand pinches will increasingly expand to other parts of the country, FERC's Christie said. "It's going to become more stark in other multi-state regions, too," he warned. Reporting by Laila Kearney; Editing by Liz Hampton Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Climate & EnergyRegulatory OversightGovernanceGrid & InfrastructureNuclear
[2]
Data center build-out stokes fears of overburdening biggest US grid
AI data centers are driving record US electricity demand, straining the aging grid. With fossil fuel plants retiring and new power projects delayed, regulators warn of reliability risks, especially in PJM's high-demand region.The rapid development of AI data centers is intensifying concerns about how well an aging US electrical grid can hold up to that demand, energy executives and regulators said at the CeraWeek conference in Houston this week. The build-out of Big Tech's giant computer warehouses, which at a single site can consume as much power as a mid-sized US city, is propelling US electricity consumption to record highs. Government agencies project data center demand will triple within the next three years, consuming 12% of the entire US power supply. "What we're seeing today is unprecedented growth and the challenges the grid is facing are getting more pronounced," Samir Vora, a senior power generation executive at Mitsubishi Power Americas, said in an interview. Even as electricity demand swells, generators that run on fossil fuels are retiring. New generation and power lines often toil for years in interconnection queues, tightening the delicate supply-demand balance needed to avoid blackouts. "When it comes to the reliability of the electric grid, we have a rendezvous with reality," Mark Christie, who leads the Federal Energy Regulatory Commission (FERC), said at the conference on Thursday. Christie said that reality has become the most stark in the country's biggest electrical grid, PJM Interconnection, which covers 13 states and the District of Columbia. PJM's service area has the world's largest concentration of data centers, with member state Virginia routing about 70% of global internet traffic through the state. In its latest capacity auction, PJM announced prices that were more than 800% higher than the previous year, with the grid operator citing rising demand and shrinking supply. "I'm optimistic that this is a solvable problem but it is certainly not a trivial problem," Manu Asthana, CEO of PJM, said on a panel discussion. PJM projects its peak demand to grow from 152 gigawatts to 184 gigawatts by 2030, with nearly all of the additions coming from data centers, Asthana said. Without the quick addition of new power supply, supply and demand pinches will increasingly expand to other parts of the country, FERC's Christie said. "It's going to become more stark in other multi-state regions, too," he warned.
[3]
Data center build-out stokes fears of overburdening biggest US grid
HOUSTON (Reuters) - The rapid development of AI data centers is intensifying concerns about how well an aging U.S. electrical grid can hold up to that demand, energy executives and regulators said at the CERAWeek conference in Houston this week. The build-out of Big Tech's giant computer warehouses, which at a single site can consume as much power as a mid-sized U.S. city, is propelling U.S. electricity consumption to record highs. Government agencies project data center demand will triple within the next three years, consuming 12% of the entire U.S. power supply. "What we're seeing today is unprecedented growth and the challenges the grid is facing are getting more pronounced," Samir Vora, a senior power generation executive at Mitsubishi Power Americas, said in an interview. Even as electricity demand swells, generators that run on fossil fuels are retiring. New generation and power lines often toil for years in interconnection queues, tightening the delicate supply-demand balance needed to avoid blackouts. "When it comes to the reliability of the electric grid, we have a rendezvous with reality," Mark Christie, who leads the Federal Energy Regulatory Commission (FERC), said at the conference on Thursday. Christie said that reality has become the most stark in the country's biggest electrical grid, PJM Interconnection, which covers 13 states and the District of Columbia. PJM's service area has the world's largest concentration of data centers, with member state Virginia routing about 70% of global internet traffic through the state. In its latest capacity auction, PJM announced prices that were more than 800% higher than the previous year, with the grid operator citing rising demand and shrinking supply. "I'm optimistic that this is a solvable problem but it is certainly not a trivial problem," Manu Asthana, CEO of PJM, said on a panel discussion. PJM projects its peak demand to grow from 152 gigawatts to 184 gigawatts by 2030, with nearly all of the additions coming from data centers, Asthana said. Without the quick addition of new power supply, supply and demand pinches will increasingly expand to other parts of the country, FERC's Christie said. "It's going to become more stark in other multi-state regions, too," he warned. (Reporting by Laila Kearney; Editing by Liz Hampton)
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The rapid growth of AI data centers is pushing US electricity demand to record highs, raising concerns about the aging power grid's ability to meet future needs. Energy executives and regulators warn of potential reliability issues as fossil fuel generators retire and new power projects face delays.
The rapid development of artificial intelligence (AI) data centers is pushing U.S. electricity consumption to record highs, raising serious concerns about the ability of the aging electrical grid to meet this growing demand. Energy executives and regulators at the recent CERAWeek conference in Houston highlighted the challenges posed by this unprecedented growth 1.
Samir Vora, a senior power generation executive at Mitsubishi Power Americas, emphasized the scale of the issue: "What we're seeing today is unprecedented growth and the challenges the grid is facing are getting more pronounced" 2.
Government agencies project that data center demand will triple within the next three years, potentially consuming 12% of the entire U.S. power supply. These massive computer warehouses can each consume as much power as a mid-sized U.S. city 3.
The situation is particularly critical in the PJM Interconnection, the country's largest electrical grid covering 13 states and the District of Columbia. Mark Christie, head of the Federal Energy Regulatory Commission (FERC), stated, "When it comes to the reliability of the electric grid, we have a rendezvous with reality" 1.
PJM's service area hosts the world's largest concentration of data centers, with Virginia alone routing about 70% of global internet traffic. The grid operator projects peak demand to grow from 152 gigawatts to 184 gigawatts by 2030, with data centers accounting for nearly all of this increase 2.
Several factors compound the challenge of meeting this growing demand:
Manu Asthana, CEO of PJM, expressed cautious optimism: "I'm optimistic that this is a solvable problem but it is certainly not a trivial problem" 3.
FERC's Christie warned that without quick additions to power supply, these supply and demand pressures could spread to other parts of the country. "It's going to become more stark in other multi-state regions, too," he cautioned 1.
As the AI industry continues to grow, balancing technological advancement with sustainable power infrastructure remains a critical challenge for policymakers, energy providers, and tech companies alike.
Reference
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The Federal Energy Regulatory Commission (FERC) held a technical conference to discuss the costs and reliability concerns associated with building energy-intensive data centers at U.S. power plant sites, as the tech industry races to deploy AI infrastructure.
4 Sources
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The rapid growth of artificial intelligence and data centers is putting unprecedented pressure on the U.S. power grid. This surge in energy consumption, coupled with increasing electrification and extreme weather events, is challenging the nation's aging electrical infrastructure.
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The rapid growth of AI and cryptocurrency mining is straining North America's electrical grids, potentially leading to reliability issues and blackouts as early as next year, according to industry watchdogs.
5 Sources
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The rapid growth of AI is straining power grids and prolonging the use of coal-fired plants. Tech giants are exploring nuclear energy and distributed computing as potential solutions.
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A new report suggests that the rapid growth of AI-driven data centers is causing power distortions in nearby residential areas, potentially leading to electrical issues and grid instability.
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