Green Energy Supports AI Data Centers with High Electrical Demands

Green Energy Supports AI Data Centers with High Electrical Demands

Sparky Afternoons and Shady Deals: The Hype and Hindrance of Renewable Energy

On a splendid spring day in April, a massive blackout swept across the Iberian Peninsula, leaving millions in the dark. Shops shuttered, travelers stranded, and mobile networks went dead. Experts are still dissecting the cause. This event has sparked heated discussions about the best energy sources, as artificial intelligence (AI) and data centers keep growing at a breakneck pace.

Renewable energy is the talk of the town these days, especially with new energy storage solutions, smarter power grids, and energy-efficient practices. But for now, we're still gripped by the need to pair clean energy with natural gas to ensure a dependable power supply. However, the future promises to be dominated by green energy and nuclear power.

Jim Spencer, the man at the helm of Exus Renewables North America, believes that owing to more renewable energy, big batteries in the US, and improved grid technology, the power system these days is stronger than it was five years ago. He emphasizes the importance of renewables in powering AI data centers, meeting ever-growing energy needs, cutting costs, and fueling new economic growth.

Politicians are quick to pass the buck when power outages occur. Supporters of traditional fuels argue that wind and solar only function well when the weather is amiable, necessitating backup power from batteries or natural gas, which can be a costly affair.

During the Iberian Peninsula blackout, renewables supplied 70% of the energy. Despite this, the outage wasn't blamed on wind or solar power. Instead, it was the power grid's inability to swiftly rectify sudden issues that caused the problem. Two substantial power losses occurred at stations in southwestern Spain, resulting in a sudden decrease in power, affecting the grid's voltage and frequency – the essential signals that keep the power system stable.

Spencer believes that green energy is the cheapest and quickest way to add power to the grid, working hand-in-hand with batteries, demand response, and quick-start natural gas power plants. Battery prices have plummeted by more than 85% since 2010, which has done wonders for grid stability. Renewable energy can easily be installed near modular data centers.

Ron Schoff, a director of research at EPRI, noted during a virtual event, "We need to know when technology is ready and how much it costs, especially as data centers start demanding more power." He added, "With data center power needs expected to grow exponentially in the next two to three years, the system needs to handle swift changes in electricity supply and demand."

Taming the Wind

Wind Harvest boasts superior turbines built to handle even the toughest conditions. These tall, vertical turbines spin differently from conventional horizontal ones, making them effective even during storms or when the grid is under stress, thereby preventing blackouts and maintaining system stability.

Kevin Wolf, CEO of Wind Harvest, said, "Until now, no one has managed to manufacture a turbine that performs well in strong, choppy winds close to the ground. Our turbines are perfect for wind farms and can help power AI data centers in areas like California. We can harness wind energy consistently, even when there's little or no wind."

As of now, renewable energy needs to be combined with other fuels to meet the monumental power demands of AI data centers. These centers cannot tolerate power outages and require reliable and affordable battery backup or fast natural gas power.

AI is on an upward trajectory, but several clean energy technologies like long-lasting storage, clean hydrogen, and small nuclear reactors are not quite ready for prime time. Natural gas and large nuclear plants still work round the clock to power AI data centers. The Trump Administration favors coal for this purpose, but coal is slow, expensive to maintain, and lacks flexibility.

Cornelius Shields, the brainchild behind Kore Infrastructure, stated, “Given the enormous power requirements of AI globally, we must leverage all types of energy, including renewable energy that can stay the course, be set up nearby, and expand as needed. Energy from organic waste is one alternative that we haven't explored fully yet.”

Keeping it steady

The utility sector aspirations remain the same: to provide people with steady electricity at the best possible price. Coal doesn't align with this goal, as it is dirtier and costlier than renewable energy or natural gas. Most American coal power plants are old and inefficient, making repairs prohibitively expensive. Utilities are looking ahead, considering costs over 20 to 40 years, but coal seems to be losing its appeal on the market.

Energy consumption is expected to escalate significantly in the next 5 to 10 years due to efforts to reduce carbon emissions, increase electricity use, and the proliferation of AI and data centers. To accommodate this growth, we need advanced grid technologies to expand the network's capacity. At the same time, it's essential to retire old coal, nuclear, and natural gas plants that have been working for over 40 years. Renewables are booming; in 2022, solar and battery storage accounted for 81% of new electric capacity added.

Top tech companies like Google, Microsoft, and Meta aim to run entirely on renewable energy. They're doing so to meet investor and regulatory expectations for cutting emissions and adopting greener practices. AI data centers can be placed in areas rich in renewable energy, thereby easing the pressure on the main grid.

Right now, about 260,000 megawatts of power are ready to join the U.S. grid – more than double what existing power plants produce. According to the Lawrence Berkeley National Lab, 95% of this new power comes from solar, wind, and battery storage.

Jason Huang, the man behind TS Conductor, said, "The power grid is the critical bottleneck. Our new advanced conductor technology, ready for widespread adoption, can address this and make power more affordable."

The blackout in the Iberian Peninsula is a far cry from a rare event. It happened due to weak regulations, old grid technology, and extreme weather. As electricity demand rises, so will the problems. However, this surge in demand also paves the way for improvement and innovation in renewable energy technologies, ensuring clean energy can always meet the demands of data centers in real-time.

Published: 2nd May 2025

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1. The blackout in the Iberian Peninsula highlighted the importance of sophisticated grid technology in handling sudden power issues, as renewable energy supplied 70% of the energy during the outage.
2. As AI data centers demand more power, experts like Ron Schoff at EPRI underscore the need to understand when technologies are ready and their associated costs, especially with data center power needs projected to grow exponentially in the next few years.
3. To boost grid stability and accommodate growing power demands, companies like TS Conductor are developing advanced conductor technology to make power more affordable and address the critical bottleneck in the power grid.
4. Advancements in solar, wind, and battery storage technologies have made renewable energy economical, efficient, and a viable alternative to traditional energy sources like coal and natural gas, especially for powering AI data centers in locations rich in renewable energy.

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