Data centers have become one of the primary sources of new electricity demand across the U.S. In particular, the Mid-Atlantic region, which is the largest power market in the world, expects 11 GW of new data centers by 2030 in northern Virginia alone, representing more than 40 percent of the state’s current peak demand, according to Aurora Energy Research.
These data centers demand significant amounts of electricity, and that demand is rising fast. The data center power demand could drive the addition of up to 15 GW of natural gas capacity by 2030, according to a new report from Aurora Energy Research. Data centers alone will increase peak power demand at Dominion—the utility serving most of Virginia—by 50 percent over the next six years.
This fast, concentrated load growth will present a major challenge to ensure sufficient electricity generation and transmission capacity.
“Adding the 10-15 GW of firm generation capacity needed to supply these data centers and keep the lights on in Virginia will not be easy. It can take three-four years for the transmission organization just to greenlight a new generator, and market prices are currently too low for developers to build the kind of capacity required,” said Zachary Edelen, PJM Research Lead at Aurora Energy Research.
Data centers’ load growth and the associated need for new generation capacity could strongly impact power prices, according to Aurora’s report. Aurora’s modeling shows that large demand additions can lead to a step-change in wholesale power prices.
By J. Sharpe Smith, Inside Towers Technology Editor
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