NEW YORK :Costs and reliability concerns related to the burgeoning trend of building energy-intensive data centers next to U.S. power plants were the focus of a technical conference held on Friday by the Federal Energy Regulatory Commission.
As the technology industry races to deploy data centers for technologies like generative artificial intelligence, quickly accessing the massive amounts of electricity for the centers has become a critical problem.
Connecting data centers directly to power plants, in an arrangement known as co-location, has presented a fast route to accessing large amounts of electricity, instead of toiling for years in queues to connect to the broader grid.
“I believe that the federal government, including this agency, should be doing the very best it can to nurture and foster their development,” said FERC Chairman Willie Phillips, adding he considered AI centers vital to national security and the U.S. economy.
This year Amazon bought a data center powered directly by a Pennsylvania nuclear plant owned by Talen Energy. Shares of fellow major independent nuclear operators, including Constellation and Vistra, have shot up this year partially on the prospect of striking similar deals.
The possibility of a ballooning number of co-located data centers has raised questions about potentially higher power bills for everyday customers because the centers will use grid infrastructure and services paid for by the public.
Connecting data centers directly to power plants that had been supplying power to the public has also sparked reliability concerns, in part, because they can divert steady power from the grid.
FERC questioned whether the co-located centers will use the grid as backup power and what will happen if the neighboring power plant unexpectedly goes offline.
“Does the customer get to still draw power from the grid? Because if it does, that’s going to have a huge impact,” said Commissioner Mark Christie.
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