Phantom data-center requests strain U.S. grid: LPPC

Jennifer Hiller’s recent The Wall Street Journal article, “Data Centers That Don’t Exist Yet Are Already Haunting the Grid”, sheds light on a growing concern for U.S. utilities: the surge in electricity demands driven by proposed data centers that may never materialize. While companies like American Electric Power, Oncor, and CenterPoint Energy are receiving interconnection requests totaling nearly 400 gigawatts—more than half the peak demand of the entire Lower 48 states—many of these projects are speculative, with developers submitting proposals across multiple locations to secure the best grid access. This uncertainty poses risks of overbuilding infrastructure that ratepayers could ultimately fund. Hiller recently discussed this issue on the September 5 episode of This Week in Cleantech with hosts Mike Casey of Tigercomm and Paul Gerke of Factor This. They delved into how utilities are grappling with the complexities of forecasting AI-driven power demands and the challenges of balancing infrastructure investments with actual needs. As the demand for AI technologies grows, it’s crucial for stakeholders to collaborate on better forecasting and streamlined permitting processes to ensure the grid’s resilience without overcommitting resources.

Louisiana Regulators Rush Approval of Entergy, Meta Gas-Powered Data Center Plan Lacking Ratepayer Protections The facility will use roughly three times as much electricity as the entire city of New Orleans annually, according to the Alliance for Affordable Energy. .. https://lnkd.in/eWvmmEWG

Texas is now preparing to cut power to data centers during grid emergencies, a response to growing strain from extreme weather, surging demand, and outdated transmission infrastructure. Governors and grid operators are scrambling as Texas power demand could nearly double by 2030, fueled significantly by the rise of AI-powered data centers and broader electrification trends. The changing regulatory landscape, including laws enabling ERCOT to order shutdowns and require backup infrastructure (like switches and generators), marks a pivotal shift in how energy-intensive industries are managed in Texas and potentially across the U.S. https://lnkd.in/gCgiZUxa

Data center demand for AI power is exploding. Oncor (Texas) faces 186 GW of data center requests - 6x its peak load. Houston’s CenterPoint jumped from 1 GW to 25 GW in a year. The catch? Many projects are speculative, “phantom data centers” that strain grid planning and create risk of overbuilding. Here’s the key: Natural gas plants are powering this AI boom because they can supply reliable, 24/7 electricity at scale - something renewables can’t fully deliver yet. This means big growth for natural gas producers and midstream companies via increased demand and infrastructure expansion. Think billions of cubic feet more gas demand and major pipeline, storage, and power plant development especially in Texas and Virginia. AI’s future depends on electricity. And today, that electricity depends heavily on natural gas. Is this surge real or hype? What should energy leaders do to balance growth, risk, and sustainability?

Today The U.S. Department of Energy (DOE) announced Speed to Power and opened a Request for Information to move near-term grid capacity, transmission and generation, faster. If you develop projects or plan for large loads (artificial intelligence/data centers, advanced manufacturing), this is the time to show what’s truly shovel-ready. What it could mean: Faster lanes for projects that are actually ready to build Clearer expectations around commercial readiness Federal support aimed at congestion and interconnection bottlenecks What we’re watching: Which corridors are prioritized to unlock renewable-rich zones and large-load growth Whether independent system operators and regional transmission organizations introduce readiness screens for big new loads How permitting reform intersects with near-term buildouts Federal tools likely in the mix: DOE Transmission Facilitation Program Grid Resilience and Innovation Partnerships program DOE Loan Programs Office - Title 17 Clean Energy Financing Program Technical assistance from the United States National Laboratories We put together a practical, no-jargon guide- what the U.S. DOE is asking for, how to frame responses, and where these tools can compress timelines: 👉 https://lnkd.in/gYHJZTgN At ZEG, we map near-term capacity and de-risk points of interconnection so teams can move decisively. If you’re weighing sites or large-load interconnections, let’s compare notes. #SpeedToPower #GridModernization #Transmission #Interconnection #DataCenters #AIEnergy #RenewableEnergy #PJM #ERCOT #MISO #SPP #CAISO #ISO-NE #WECC

The data center power demand math keeps getting wilder. We're in uncharted territory. Shielding consumers from rising prices and preserving our already eroding grid reliability is going to be an enormous challenge. The era of retiring well operating existing power plants appears lone gone. Good read from the WSJ on how the crazy power demand numbers are already upending utility planning: "Take American Electric Power AEP, 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." More: https://lnkd.in/erM6hX_A

Christmann: Data Centers Can Strain the Grid North Dakota Public Service Commission Chairman Randy Christmann cautioned lawmakers last week that the growing number of data centers setting up in the state poses significant risks to the electric grid if not carefully managed. https://trst.in/5ajtGZ

Dominion projects peak power demand for data centers in Virginia could rise to 13.3 gigawatts by 2038, nearly a fivefold increase in 16 years.

🚀 **Oncor is Expanding the Texas Power Grid** Oncor Electric Delivery, Texas's largest utility, faces a massive demand surge for grid connections, driven mainly by data centers. Here's how they're planning to handle it: - **Huge Demand Spike:** Oncor received 200 GW connection requests, 93% from data centers. This means big changes for the grid! - **Major Investments Planned:** Oncor might boost its current capital plan by over $12 billion to expand the grid. - **Sempra's Strategic Moves:** By selling certain assets, Oncor's parent company, Sempra, aims to fund this growth and focus on stable returns. - **Why It Matters:** The growth of AI, data centers, and industrial sectors means Texas needs a stronger, more modern grid. 🔍 **Key Advice:** - **For Developers and Energy Consumers:** Get your interconnection agreements with Oncor quickly due to rising demand. - **For Investors and Planners:** Prepare for rapid growth in grid investment—it's a big opportunity! - **For Policymakers:** Streamline permitting to ensure critical grid upgrades happen smoothly. - **For Local Communities:** Watch for new substations and power lines as opportunities arise. - **For Sustainability Advocates:** Push for clean energy and resilience in these upgrades. 👉 **What are your thoughts on this expansion? Read the full article here:** [Read more](https://lnkd.in/dQkMKvdq)

Tomorrow, the Grid Deployment Office | U.S. Department of Energy (GDO) will publish a Request for Information (#RFI) on federal actions to rapidly expand grid capacity and enable electricity demand growth. DOE is inviting public input from stakeholders, notably on how to use its existing funding programs/authorities 💰 for: ⚡ large-scale generation, 🌐 transmission, and 🏗️ grid infrastructure projects...that can accelerate speed to power to support manufacturing, industrial, and AI/data center electricity demand growth. 🗓️ Comments will be due by November 21, 2025. Specific information DOE is looking for includes details on large-scale projects (enabling minimal incremental load of 3GW and supporting up to 20GW), key geographic areas to prioritize, best use of funding/financing/technical assistance, trends in load growth, and constraints to building out grid infrastructure. If you're a utility, developer, energy user, or other industry stakeholder looking to engage in this process and work with GDO on the necessary build-out of the grid, reach out to Boundary Stone Partners for trusted support. Link to the unpublished RFI ⤵️ https://lnkd.in/gVabPVv3