memo
In recent years, AI has become extremely popular in the technology industry, and the demand for electricity for data centers is rapidly increasing. On the other hand, it has been pointed out that as competition for electricity to operate data centers intensifies, electric power companies are concerned about a shortage of power transmission capacity.
‘Three New York Cities’ Worth of Power: AI Is Stressing the Grid – WSJ
https://www.wsj.com/business/energy-oil/ai-data-center-boom-spurs-race-to-find-power-87cf39dd
The technology industry continues to race to connect high-voltage wires for use in things like AI data centers and electric vehicle charging infrastructure, severely disrupting power supplies. Power companies say it will take 10 years for some companies to receive the electricity they demand.deliveredis reported.
In addition, Salt Lake City, Utah, has temporarily suspended a huge amount of power supply to data centers, and in Santa Clara, California, local power company “Silicon Valley Power” has responded to requests for power supply to data centers. I’m refusing. Regarding power issues, Silicon Valley Power said, “We are facing power transmission and generation problems that will be difficult to solve by the early 2030s.”
According to the Wall Street Journal, a foreign media outlet, generative AI searches like ChatGPT can consume at least 10 times more energy than Google searches, and the American Electric Power Research Institute says, “By 2030, “Data centers may account for approximately 9% of electricity consumption.”
This requires power companies to upgrade their power grids to meet data center demands. However, if the data center is asked to bear the cost, there is a possibility that the data center will be relocated to another region, and as a result, there is a concern that the cost burden may be shifted to other electricity consumers. I am.
American Electric Power, a power company with the largest power transmission line in the Midwest in central Ohio, has decided that, at the current pace, its power transmission capacity will run out in 2028, so it plans to create a virtual data center that uses its own power lines. It proposes 10-year long-term contracts and higher electricity rates for currency miners. “The amount of infrastructure required to keep powering things like data centers is enormous,” said Mark Reiter, president and chief operating officer of American Electric Power. That is why we have proposed this price increase.”
On the other hand, groups such as the Ohio Manufacturers Association and companies such as Google opposed American Electric Power’s proposal, arguing that the rate increases could impose an unfair burden on other electricity consumers. I am. In addition, the “Data Center Coalition,” which includes Google, requested that the “10-year” contract period requested by American Electric Power be shortened to “8 years.”
Because long-term contracts are likely to receive opposition from companies and organizations, some electric power companies are considering a contract method called a “take-or-pay contract” in which “you pay a fixed amount of electricity regardless of the amount used.” I’m doing it. According to Brian Abel, chief financial officer (CFO) of the American energy company The contract method is fair to all customers and allows for recovery.
Andy Kvenglo, managing director of real estate services company JLLL, said, “Companies that didn’t exist two years ago are now demanding massive power supplies of 100 megawatts.” The key is to determine what the truly important demand is.”
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in Memo, Posted by log1r_ut
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