Public Power Regulators Grant AEP’s Request for Data Center Owners to Fund Infrastructure Improvements

DailyEnergyInsider.com: Kim Riley

Data-Centers-to-Fund-Elec-Grid-Improvements
Image: DailyEnergyInsider.com: Shutterstock

“The Public Utilities Commission of Ohio (PUCO)” recently awarded AEP of Ohio to partner with data center owners for “establishing financial obligations” to support electrical grid infrastructure improvements that directly accommodate them.

The ruling provides a huge win for AEP, reducing the need for other AEP rate payers to be partially expensed through gradual rate increases to fund AEP’s required energy grid upgrades for bringing new data centers online. New data center owners will be “required to pay a minimum of 85% of AEP’s energy they are subscribed to use to help cover the costs of bringing power to those facilities.”

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Can the U.S. Power Grid Sustain the Exponential Rise in Planned AI Driven Data Center Connections?

Powermag.com: Steve Empedocles

AI-Data-Center-Power-Demand
Image: Powermag.com

Over the last several months, artificial intelligence (AI) has gained increasing popularity and remains dependent upon large server farms for processing AI’s big data requirement, at essentially, the speed of light. Planned new construction for enormous data centers are emerging nearly in every large city across the nation.

With America’s goal of becoming the “global leader in the AI race,” power utilities at both the generation and power delivery levels, struggle to maintain AI’s swift and vast desire for power. New electric generating plants and power delivery system upgrades remain behind the challenge while presenting a new dilemma: a more vulnerable electric grid with predictive power interruptions, brownouts, and potential blackouts.

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The Forecast for Renewable Resources Could Rise 300 Percent Based on Future Energy Demands

NBCNews.com – Energy, Spencer Kimball (CNBC)

NBC-News-Renewables-Farm-Palm-Springs-CA-Getty-Images
NBCNews.com-Renewables Farm, Palm Springs, CA (Mario Tama-Getty Images)

“Renewable energy demand will triple over the next seven years as data center growth accelerates to facilitate the proliferation of artificial intelligence, NextEra Energy CEO John Ketchum said Wednesday.

NextEra added 3,000 megawatts of renewable and storage projects to its order backlog in the second quarter. Of those, 860 megawatts — or 28% — come from agreements with Google to power the tech company’s data centers.”

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Texas Entergy Seeks More DOE Funding for Grid Reliability Improvements

EnergyCentral.com (Daily Energy Insider)

Energy-Central-TX-Entergy
EnergyCentral.com (DEI) – Texas Entergy

“Entergy Texas said it had updated its application for the U.S. Department of Energy’s (DOE’s) Grid Resilience and Innovation Partnerships program to secure funding for an infrastructure and electrical grid hardening project. Energy applied for $107.5 million in federal grants to improve the resiliency of Port Arthur, Texas’ power grid.

If approved, the funds would help the company improve the resiliency of the power grid in Port Arthur, which have historically been affected by extreme weather events.”

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Tennessee Valley Solar + Storage Conference (2024)

KnoxTNToday.com – Anne Brock (Our Town Outdoors)

2024-TN-Valley-Solar-Storage-Conference
KnoxTNToday.com (2024 TN Valley Solar Storage Conference)

“How is solar transforming utility and business decisions in the Tennessee Valley? What policies and trends will affect life here over future decades when it comes to clean energy choices? Industry leaders plan on gathering this fall to tackle the challenges and opportunities at the 2024 Tennessee Valley Solar + Storage Conference.

This conference will be located at the Westin Huntsville in Alabama, in the heart of Tennessee Valley Authority territory. It is organized and hosted by the Tennessee Solar Energy Industries Association (November 20 – 21).”

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