Rising Demand for Power from Data Centers Sparks Grid Upgrades
Power demand from U.S. data centers is expected to nearly triple in the next three years and consume as much as 12% of the total electricity produced, according to a study by Lawrence Berkeley National Laboratory. CenterPoint Energy has increased its 10-year capital expenditure plan by $500 million to strengthen its electricity grid and handle the growing demand for power from new data centers. The company expects demand to jump nearly 50% by 2031 in the Houston electric service territory.
- The surge in power demand from data centers highlights the need for utilities to invest in grid resilience and modernization to avoid brownouts and blackouts, which could have significant economic implications.
- How will policymakers balance the growing demand for renewable energy sources with the increasing reliance on traditional fossil fuels to meet the electricity needs of data centers?