Data centers continue to expand at an unprecedented rate. There are more than 12,000 active projects in the US currently seeking grid interconnection, representing 1570 GW of generator capacity and 1030 GW of storage.
According to Boston Consulting Group (BCG), data center power consumption is expected to grow from 2.5% of US electricity consumption to 7.5% over the next five years, driven by artificial intelligence (AI).
It is no surprise, then, that when developers request more power from utilities for ever-larger “AI factories,” they are often disappointed. In many areas, the grid just doesn’t have the capacity and is unlikely to have it for many years. Hence, 62% of data centers are exploring on-site power generation, and 19% have already implemented it. AI factory developers want power now.
Rather than relying on the congested grid, many AI infrastructure companies are becoming active energy developers through on-site microgrids, private power purchase partnerships, and small modular reactors for producing nuclear energy. Controlling their own electricity supply through a concept called bring your own power removes the risk of regional grid failure and allows developers to achieve sustainability goals.
Click Here to read the full story in the May issue of Gas Compression Magazine:
