Fast moving energy landscape is demanding power for Data Centers, and for now, pushing up greenhouse emissions as developers have been choosing gas as the speediest path to powering up.
But some savvy operators, as well as policy makers, looking out a decade or two, wonder about the wisdom of relying on fossil fuel, with the prices for clean energy, particularly solar and batteries, crashing month by month, and the urgency of climate change only rising.
CNBC:
Google parent Alphabet on Monday announced it will acquire Intersect, a data center and energy infrastructure company, for $4.75 billion in cash in addition to the assumption of debt.
In a release at the time, Intersect said its strategic partnership with Google and TPG Rise Climate aimed to develop gigawatts of data center capacity across the U.S., including a $20 billion investment in renewable power infrastructure by the end of the decade.
Sheldon Kimber, Founder and CEO of Intersect, on Energy Empire Podcast:
…if I were starting my own company, I see clean firm and next-gen geothermal where it becomes really hard to imagine putting large amounts of that in the load pocket, and those technologies are going to have to compete head-to-head with renewables for transmission. I wouldn’t bet against solar and batteries. I just wouldn’t. ….I don’t know anybody on the planet who’d argue that’s a great strategy.
It’s all about the flexibility to get rid of the gas over time. We are not building anything that isn’t in a place where there are enough renewables around it, which we control, that we can decarbonize it as batteries get better. We’re building flexible gas that’s modular, can be taken out, can run at a lower capacity factor, with enough renewables on the site that we can keep building until it’s 100% clean firm. The problem is people siting a big combined-cycle gas plant behind the meter in a tight, landlocked area that can never be decarbonized. That’s a recipe for stranded costs.
Associated Press:
Lawmakers in states with stronger climate policies don’t want data centers to hinder their goal of slashing planet-warming greenhouse gas emissions.
In other states, environmental advocates and corporations with clean energy goals are working regulatory levers to push monopoly utilities that historically control the energy supply and grid access.
The problem clean energy proponents are confronting is that tech giants are demanding power at such speed and scale — some data centers consume more energy than a mid-size city — that the construction of wind and solar simply can’t keep up.
Continue reading “Data Centers Quandary: Gas or Renewables?”