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Lack of Power Threatens to Pull Plug on Data Center Ops - Inside Towers

Mar 11, 2024 - insidetowers.com
The telecommunications industry's push to support artificial intelligence is leading to a surge in power demand, with data centers running out of electricity. The Washington Post reports that states like Virginia, Texas, Georgia, and Arizona are struggling to keep up with the increasing power demand, which is expected to more than double between 2022 and 2023. The growth is driven by tech firms like Amazon, Apple, Google, Meta, and Microsoft building more data centers for AI, which require significantly more power than traditional data centers. Additionally, the growth of crypto-mining and the Biden administration's push for more factories in the U.S. are also contributing to the power crunch.

This power shortage could lead to higher electric rates, delay the retirement of coal plants, and slow down the transition to using the power grid for household appliances. It may also cause states to reconsider their incentives for data center companies. However, some data center developers are exploring alternative power sources, such as high-tech fuel cells, geothermal energy, and small on-site nuclear plants. Microsoft has also invested in a company developing zero-emissions fusion power.

Key takeaways:

  • The data centers behind AI, virtual RAN and edge compute are running out of electricity due to the surge in power demand, particularly in states like Virginia, Texas, Georgia and Arizona.
  • North American Electric Reliability Corp.’s Long Term Reliability Assessment shows power demand more than doubling between 2022 and 2023, from 221.5k gigawatt hours up to 563.9k gigawatt hours.
  • This power crunch may raise electric rates, slow the retirement of coal plants, and slow the transition to using the power grid for household appliances. States may also drop their incentives to promote the influx of data center companies.
  • Data center developers are exploring alternative power sources, such as off-the-grid, high-tech fuel cells, geothermal energy, small on-site nuclear plants, and zero-emissions fusion power.
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