... and in today's news; we have:
"Planned AI Centers Strain Energy Grid
…In some cases, the collective requests equal or surpass— by multiples—the existing electricity demand in a utility’s entire service region.
Take American Electric Power, a big utility that serves 11 states, and Sempra’s Texas utility Oncor. Combined, they have received requests to connect projects, many of them data centers, to the grid requiring almost 400 gigawatts of electricity...
That is an astronomical amount that represents more than half the peak electricity demand in the Lower 48 states on two hot days in July.
Part of the problem is the electricity needs of the same potential projects are being double, triple or quadruple counted by different utilities. Data-center developers and tech companies are peppering utilities around the country with requests for service while scouting locations where they can quickly construct massive data centers and connect to the grid...
“A lot of it is real, but how much?” asked Tom Falcone, president of the Large Public Power Council, a trade association for the nation’s largest not-for-profit electric utilities.
In Texas, Oncor had 552 requests from large customers such as data centers or industrial facilities in its interconnection queue by the end of June, up 30% from the end of March.
Its current system peak, or the power consumption at the moment customers require the most electricity, is 31 gigawatts...
The requests in the queue from data centers require about 186 gigawatts, while industrial firms have requested about 19 gigawatts...
But AEP has an additional 190 gigawatts of potential demand in line—roughly five times its current system size, and the equivalent power use of at least 48 million homes.
“We know not all of that is going to come online, but even a fraction of that is significant,” Trevor Mihalik, AEP’s chief financial officer, told analysts on the company’s recent earnings call...."
That's why data centers have been migrating around the globe to be closer to energy sources... or cooling sources, for that matter. Every bit counts. It's not fueled by AI, but amplified for sure.
Also that's why SMR (small nuclear reactor) companies may be a good investment for a bit.