Fossil Fuels
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The data center dilemma centers first on a familiar mismatch of timescales. Utilities and their regulators tend to plan based on the small, incremental demand growth. But development and the power demand it generates move at ever-increasing digital speed.
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The direction FERC takes during President-elect Donald Trump’s second term is up in the air, but the commission may spend some of its time attempting to cut costs to consumers.
Grid Status
Answering the question isn’t easy, according to CAISO staff and other electric industry experts, who say that while batteries are having a notable impact, several factors complicate the narrative that they’re displacing gas on the grid.
The White House
As they prepare to leave office, Biden administration officials remain confident that IRA funds already committed by DOE will be impossible to claw back by the incoming Trump administration.
Blade Energy Partners/CPUC
California regulators voted to keep the Aliso Canyon Natural Gas Storage Facility running, saying the site of a massive gas leak in 2015 remains necessary to maintain reliability and reasonable rates.
Lawrence Berkeley National Laboratory
Data centers’ voracious appetite for electricity could spike more than threefold over the next four years, rising from 4.4% of U.S. power demand in 2023 to as high as 12% in 2028, according to the Lawrence Berkeley National Laboratory.
Cheniere
A DOE study found that increasing exports of LNG would create economic risks and cause environmental damage.
EVgo
EVgo CEO Badar Khan said expanding the availability of fast chargers is “a key ingredient to the long-term competitiveness and sustainability of the U.S. automotive industry."
GE Vernova
Two major operators in the natural gas and power sectors say they are moving to meet data center power demand with new natural gas generation capacity.
Intersect Power
"Deep, collaborative partnerships combined with creative problem-solving are the only way we can meet the explosion of AI growth, as well as society's accelerating electricity demand," said Sheldon Kimber, CEO of Intersect Power.
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