The power needs for data centers are set on a course of exponential growth, predicted to double by 2029, reveals a study by JLL. This dramatic increase has its roots in the relentless expansion of AI and the proliferation of cloud services, which are together pushing the capacity of the energy sector to its limits. One alarming projection suggests that by 2027, up to half of all new AI servers could be power-starved.
A primary cause of this impending discrepancy between supply and demand lies within the operating timescales of utilities and power developers. Mostly, large power plants require years to construct and inaugurate. Quick-deploy solutions, such as solar and wind installations, are hindered by lengthy connection times to the grid.
Furthermore, the tendency of data centers to cluster in certain areas adds further strain to local power grids—the sudden explosion in AI power needs disrupting slower, linear growth plans of the utilities. As a result, an increasing number of data center developers are forging direct alliances with renewable developers and nuclear startups.
Several corporate giants, including Google and Microsoft, have already rolled out massive renewable power projects and are partnering with nuclear startups to secure volumes of carbon-free electricity by the end of this decade. The primary hurdle, according to the JLL report, is to manage supply and demand strategically.
While most data centers are located near major cities, constructing nuclear reactors—regardless of their size—in such areas poses challenges. Renewables, though quicker to permit, require vast tracts of land. Both nuclear and renewables solutions necessitate the construction of new transmission lines, which could take years to establish.
Original source: Read the full article on TechCrunch
