Utility Dive•about 1 month ago
The data center dependency crisis: When our grid can’t function without big tech
Key Takeaway
The unchecked growth of data centers is creating an unsustainable grid dependency on private tech companies, posing significant reliability risks and demanding urgent policy and market reforms to ensure grid stability.
AI Summary
- •Rapid data center load growth is creating a critical grid dependency on private technology companies, posing a significant risk to grid stability and reliability.
- •The reliance on 'voluntary cooperation' from big tech introduces market instability and potential reliability issues, as grid function becomes tied to private sector interests rather than regulated obligations.
- •Current policies and market structures are failing to adequately address this growing dependency, prioritizing short-term gains over long-term grid resilience and signaling a need for future regulatory intervention or new market mechanisms.
Topics
capacity-marketdatacenterinterconnectpolicytransmission
Article Content
We're sleepwalking into a future where our electric grid depends on the voluntary cooperation of private technology companies because the short-term benefits are too attractive to resist, writes Mothusi Pahl of Hartwell and Loche.