Data centers aren't breaking the grid. A broken grid is
6 hours ago
- #energy policy
- #grid modernization
- #data centers
- Data centers now account for about 7% of U.S. electricity demand, up from 1% 15 years ago, and demand is rapidly increasing.
- The real issue is the structurally limited grid, which struggles with new demands from EVs, heat pumps, industrial electrification, and data centers.
- Policymakers should treat demand flexibility as a grid resource to absorb new load without major new infrastructure, as shifting data center usage could avoid $150 billion in costs.
- Incentivize data centers designed for grid interactivity, with features like battery storage, to dynamically adjust energy consumption and support the grid.
- Modernize interconnection and planning processes to incorporate flexible loads, storage, and demand coordination as capacity resources, moving beyond outdated assumptions.