As the demand for artificial intelligence grows, there is renewed interest in fossil fuels. However, renewable energy advocates aim to ensure that data centers also use environmentally friendly power sources. Lawmakers in states with strong climate policies are keen to prevent data centers from derailing their greenhouse gas reduction goals. In other states, environmental groups and companies with clean energy objectives are pushing utilities to adapt.
The fast-growing energy needs of tech giants present challenges. Some data centers use more energy than a mid-size city. This demand has triggered a significant increase in natural gas-fired power plant construction. Additionally, utilities, power plant owners, and the federal government are maintaining old coal-fired plants past retirement.
Laws on New York Governor Kathy Hochul’s desk would force data centers of certain sizes to achieve renewable energy targets by 2030 and source at least 90% of their energy from renewables by 2040. State Sen. Kristen Gonzalez supports these goals as achievable for wealthy companies investing in data centers in New York. With resources available, they should also invest in renewable power sources.
States like Michigan, Oregon, and Minnesota have set new regulations to match data centers’ energy supply with emissions reduction plans. Minnesota and Oregon have ordered regulators to align energy supplies with their environmental targets. Michigan expects hyperscale data centers to meet a 90% clean energy criterion within six years to qualify for a tax exemption. Similar legislation has surfaced in over half a dozen states, including California, Illinois, and Virginia.
Tech companies are investing in zero-emissions projects such as solar, wind, geothermal, nuclear, or battery storage. They face delays from utilities in meeting power supply demands. Working alongside environmental groups, they aim to persuade regulators to increase grid access. This is particularly challenging in places resistant to clean energy mandates.
Greg Robinson, of Aston Power in Raleigh, North Carolina, compares the situation to FedEx’s rise against the postal service’s limitations. Clean energy advocates suggest utilities will gain from new power sources while providing a large, long-term customer base.
Colorado regulators have mandated Xcel Energy to let major power users connect clean energy projects to the grid. Xcel Energy agreed, highlighting two Google projects in Nevada and Minnesota involving geothermal and combined wind, solar, and battery storage.
The Corporate Energy Buyers Association (CEBA) reached a deal with Georgia Power, approved by state regulators, enabling its members to build renewable energy sources connected to the grid. They seek similar agreements in North Carolina. CEBA’s senior vice president, Nidhi Thaker, believes these efforts will profoundly influence energy policy over coming decades.