As technology companies race to secure clean energy to power artificial intelligence, there is a growing trend of directly connecting data centers to nuclear power plants. This move has sparked resistance from some utilities over concerns about the impact on the electric grid.
Data centers, often referred to as the computer warehouses that run the Internet, now require a gigawatt or more of power, which is comparable to the average capacity of a nuclear reactor in the United States. This enormous power demand is essential for U.S. economic competitiveness and national security as the country competes with other nations in the development of artificial intelligence technology.
According to Constellation Energy CEO Joe Dominguez, connecting data centers directly to nuclear plants, a practice known as co-location, is the fastest and most cost-effective way to support the buildout of data centers without burdening consumers with the costs of building new transmission lines.
While the idea of co-locating data centers next to nuclear plants offers many benefits, it also faces controversy. For example, a deal between Amazon Web Services and Talen Energy to power a data center using the Susquehanna nuclear plant in Pennsylvania has faced opposition from utilities American Electric Power and Exelon. These utilities argue that such agreements set a precedent that will result in less available power for existing customers in the PJM grid area.
The Federal Energy Regulatory Commission (FERC) has been involved in reviewing these agreements and the potential impact on the grid. FERC has requested more information on these service agreements and plans to hold a conference in the fall to discuss the challenges associated with connecting large electricity loads directly to power plants.
As the demand for power continues to increase due to the growing number of data centers and advancements in artificial intelligence, stakeholders in the industry need to find a balance that ensures all consumers receive their fair share of power. While there are challenges and controversies surrounding co-locating data centers at nuclear plants, this practice could offer a viable solution to meet the rising power demands of the tech industry.
The relationship between tech companies and nuclear power plants in the race for clean energy presents both opportunities and challenges. It is essential for industry stakeholders, regulators, and utilities to work together to find solutions that support the growth of data centers while maintaining a reliable and sustainable energy grid for all consumers.