Energy demand from data centers growing faster than West can supply, experts say

Data centers present a “major challenge” for the electricity industry.

Data centers being rapidly built in the West are becoming an “emerging risk” to electrical grid reliability in the region, according to regional transmission experts.

New data centers, which can be built in as little as 18 months, are far outpacing the growth in new electrical energy supply and transmission, according to members of the Western Electricity Coordinating Council, a nonprofit organization based in Salt Lake City that ensures grid connection and reliability between utilities in 14 western states and parts of Canada and Mexico. Members of the council discussed challenges to grid reliability at a recent webinar first reported by the trade publication RTO Insider.

In it, council members said new energy demand from data centers has emerged as a more prescient challenge than meeting energy demand for transportation, also becoming rapidly electrified. The energy and transmission buildout needed to meet these demands is lagging, they said. By the end of 2023, just about half of the new energy buildout anticipated for the West had been completed. ….

The council in 2023 projected that demand for electricity in the West would increase about 17% by 2033 – that’s about twice what it had predicted just the year before. That leap in projected energy use is due largely to the number of large data centers being built, they said. Data centers run on large amounts of energy needed for processing and for cooling servers.

The Portland-based industry trade group Pacific Northwest Utilities Conference Committee has projected electricity demand to grow 30% in the region in the next decade, also due in large part to data centers. …

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