CESA Report Examines State Approaches to Meet Rising Power Demand

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The Clean Energy States Alliance released a report on July 2, 2023, detailing how various states are addressing the increasing demand for electricity, which is influenced by factors like geographic location and the scale of demand growth. Notably, Virginia is home to the largest concentration of data centers globally, consuming a significant portion of the state's electricity. Other states, including Georgia, Texas, and the Carolinas, are also anticipating substantial demand growth from data centers, while manufacturing demand is expected to rise in the Midwest and Southeast. The report highlights the challenges states face in forecasting load projections due to uncertainties surrounding artificial intelligence, cryptomining, and evolving state and federal policies.

To meet the rising demand, many states are expanding renewable energy and efficiency initiatives, although some are also investing in new natural gas capacity and delaying the retirement of older fossil fuel plants. The report indicates that about 94 GW of new natural gas capacity is planned by 2035, outpacing renewable energy growth. Additionally, states are exploring nuclear energy options and developing large-load tariffs to manage costs associated with increased demand. The report emphasizes the varying demand profiles of different sectors, including data centers and electrification, which pose unique challenges for grid management and regulatory responses.