Data Center Energy Infrastructure Expansion

planned

Rapid growth in data center development in the US is driving new approaches to energy procurement and increasing pressure on energy infrastructure. The expansion is expected to increase data centers' electricity consumption from 4.5% to between 9% and 17% of total US electricity generation by 2030. This growth is prompting policymakers to incentivize or require data center developers to secure dedicated power sources, including nuclear power, to provide reliable baseload electricity. Various procurement models such as bring your own power (BYOP), power purchase agreements (PPAs), behind-the-meter generation, energy parks, and microgrids are being adopted to address infrastructure constraints and regulatory challenges.