Generational Shift—Data Centers Bring Change to Energy Landscape

Darrell Proctor | Source: Power | Posted 01/08/2025

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Deals involving the data center sector are occurring regularly, as tech companies make moves to ensure they have a reliable supply of power for their energy-intensive operations.

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Deals in the data center sector are becoming more frequent as tech companies aim to secure a reliable power supply for their energy-intensive operations. Companies like Google, Microsoft, and Amazon Web Services are exploring various generation types, including nuclear power and renewable energy sources, to meet the growing demand for power from data centers. The integration of AI into power grid management is seen as a transformative step to efficiently address increased demand, optimize supply, and enhance grid stability.

These developments also include investments in nuclear technology, such as Amazon's support for small modular reactors and a deal with Energy Northwest for nuclear plant development. Additionally, companies like EQT Corp. are projecting increased natural gas demand due to new data centers and upcoming coal plant retirements, while entities like American Electric Power are turning to fuel cells to support power supply for data centers. The industry is also exploring solar power, energy markets, and foreign investments to optimize energy supply and demand to cater to the evolving needs of the data center sector.

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Generational Shift—Data Centers Bring Change to Energy Landscape

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