{"id":25586,"date":"2024-11-07T08:00:00","date_gmt":"2024-11-07T14:00:00","guid":{"rendered":"https:\/\/www.compassdatacenters.com\/compass-datacenters-is-one-of-2024s-best-places-to-work-in-north-texas\/"},"modified":"2025-03-03T12:13:18","modified_gmt":"2025-03-03T18:13:18","slug":"lets-put-panic-aside-and-plans-to-paper-to-address-power-challenges","status":"publish","type":"post","link":"https:\/\/www.compassdatacenters.com\/it\/lets-put-panic-aside-and-plans-to-paper-to-address-power-challenges\/","title":{"rendered":"Let\u2019s put panic aside and plans to paper to address power challenges\u00a0"},"content":{"rendered":"\n\n\t
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There has been a lot of talk about the growing energy demands coming from data centers. Big data and AI have been positioned as a bit of a threat. I might be dating myself to say this, but the current climate brings to mind the iconic scene from Raiders of the Lost Ark<\/em> with AI as the 12-foot boulder threatening to crush our hero and spelling certain disaster.\u202f <\/p>\n\n\n\n

Yes, AI training is expected to drive a 160% increase<\/a> in data center power demand by 2030, but it\u2019s necessary and important to respond to this new source of demand. A slowdown in digital infrastructure<\/a> development could exacerbate cybersecurity risks and threaten global competitiveness.\u202f\u00a0<\/p>\n\n\n\n

It\u2019s time to set shock and awe aside and dig in on solutions because AI purports huge advantages to the way we work, our economy and domestic security. We need AI to flourish. We can turn the power requirements of data centers into an opportunity for utility companies, local communities and the grid. Done right, a data center should be a 100-year asset, benefiting local communities as a source of economic prosperity and long-term growth…akin to railroad expansion in the late 1800s.\u202f <\/p>\n\n\n\n

Reframing \u201cwill serve\u201d<\/em><\/strong>\u202f <\/p>\n\n\n\n

One emerging area of discussion is the will-serve model, where electric utilities have a duty to serve demand as it comes. Put in place during a simpler time, the will-serve model is not suited for an era where the needs of certain customers are growing exponentially compared to others.\u202f <\/p>\n\n\n\n

Today, a developer can come to a utility and say they are building a hyperscale data center that\u2019s going to need as much energy as a small power plant. Unfortunately, in the current climate, such requests are coming from speculative investors tying up power without an actual project and true demand behind it. The utility is required to put the request in the demand queue.\u202f\u202f\u202f\u202f <\/p>\n\n\n\n

Building the infrastructure to respond to these requests could take years, with costs shared among all ratepayers. If the hypothetical data center project falls through, those customers are left paying for unneeded infrastructure.\u202f <\/p>\n\n\n\n

A more sustainable and scalable approach\u202f<\/em><\/strong>\u202f <\/p>\n\n\n\n

There is a future scenario where data centers can have access to the energy they need without harming communities or driving up costs. The only way to do it is by co-serving<\/em>. Data centers are asking for a lot, and the only way to get it is to give a lot too.\u202f <\/p>\n\n\n\n

With a co-serve model, data centers and utilities can work together to close the gap between supply and demand. This approach spreads risk across utility companies and developers, while minimizing costs to local retail and residential customers.\u202f <\/p>\n\n\n\n

Framing up a co-serve partnership\u202f\u202f<\/em><\/strong>\u202f <\/p>\n\n\n\n

I see a few ways data centers and utilities can move toward a more collaborative approach to help solve current demand challenges.\u202f <\/p>\n\n\n\n