US EditionFuture Data Centers Are Driving up Forecasts for Energy Demand. States Want Proof They’ll Get Built
Utilities forecast electricity demand to double or triple due to AI data centers, while regulators seek better methods to verify and vet project viability to protect ratepayers.
- This month, utilities and grid operators sought clearer vetting after forecasts projecting two or three times higher electricity demand to power AI data-center developers, prompting regulator inquiries.
- Developers often submit multiple interconnection requests across territories, which can make a single project appear in several forecasts, and there is no standard vetting across grids, leaving forecasts uncertain.
- PPL Electric Utilities projects data centers will more than triple peak demand, and PPL Corp. CEO Vincent Sorgi told analysts `the projects are real, they are coming fast and furious` with no near-term overbuilding risk.
- Consumers in affected service areas already face rising electricity costs tied to data-center demand, while lawmakers passed a Texas law requiring developer disclosures and Rep. Danilo Burgos pushed for stronger regulator authority.
- With regulators seeking answers, a Federal Energy Regulatory Commission member requested information from grid operators, while the Data Center Coalition and Edison Electric Institute urged better forecasting amid AI investment bubble warnings.
50 Articles
50 Articles
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Future data centers are driving up forecasts for energy demand. States want proof they’ll get built
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