How Utilities, Hyperscalers Are Working to Tackle ‘Extreme’ Data Center Power Demands
Digital infrastructure experts weigh in on the challenges, opportunities, and unanswered questions as the industry confronts a growing power problem.
Article originally written by Henry Chapman, and featured in DataCenter Knowledge, Sept 2024
As AI drives unprecedented growth in data center energy consumption, utilities and hyperscalers are locked in an uneasy, sometimes adversarial partnership to expand capacity.
Data Center Knowledge spoke with technology infrastructure experts about the challenges, opportunities, and unanswered questions facing the industry, as well as the “complex mix” of strategies and technologies required to ensure the grid can meet escalating demand.
Location, Location, Location
As of March of 2024, half of the 11,000 data centers worldwide were located in the US, according to David Porter, vice president of electrification and sustainable energy strategy at Electric Power Research Institute (EPRI). But Porter, whose research organization advises countries interested in developing new data centers, said the central challenge facing data centers and utilities was the same in the US as in Europe, Asia, or the Middle East: “[That is], whether the location the developer is using has the capacity to serve it in a short time,” he told Data Center Knowledge.
Still, Porter made clear that each jurisdiction has its own regulatory structure and cost frameworks, which can affect the speed and price at which utilities are able to deliver power. Other variables, such as the length of permitting processes in each country, or conflicts like the war in Ukraine, can lead to region-specific constraints and volatility.
Meeting Future Energy Demands
As the data center industry faces unprecedented power demands driven by AI and rapid digital growth, it seems there is no single solution to this growing challenge. Instead, experts agree that a multi-faceted approach, involving alternative energy sources, regulatory improvements, and infrastructure upgrades, will be key to meeting future needs.
While the relationship between stakeholders can sometimes be stretched, close collaboration between utilities, hyperscalers, and regulators will likely be essential in developing sustainable, reliable power solutions that can keep pace with evolving industry demands.
Read the full article here.
.png)