This podcast episode explores the rapid growth of data center power demand and the challenges it poses for the existing power grid infrastructure. Data centers are projected to consume a significant amount of global electricity, with an estimated increase from 1.5% to almost 4% by 2027. The impact of Generative AI (GenAI) is driving the growth of data centers, which are becoming much larger and require more power. However, the current power grid infrastructure is not equipped to handle this growth, leading to delays in connecting data centers to the electric grid. Data center developers are considering alternative power sources, such as locating data centers at existing nuclear plants to expedite the power-up process. While this approach offers advantages in terms of time and reliable clean power, concerns remain about the carbon emissions associated with increased natural gas use. This podcast episode also discusses the tension between the urgency to bring data centers online quickly and the need to meet sustainability goals. The speakers identify regions that are best positioned to keep pace with the power needs of GenAI, but caution that there could be local pushback against data centers due to concerns about power prices and other impacts.
