Distributed energy resources can accelerate data center interconnection

AI generated summary

Distributed energy resources (DERs) present a promising solution to accelerate data center interconnection by addressing electric grid constraints. As AI development surges, the International Energy Agency estimates that 20% of planned data center projects may face delays due to these constraints. By leveraging DERs, local utilities can create or identify spare grid capacity, allowing for faster deployment of AI compute resources while potentially reducing energy costs for local residents and businesses.

The article discusses various strategies for utilizing DERs, including the installation of batteries and generators, as well as managing flexible loads to alleviate grid congestion. It emphasizes the importance of collaboration among utilities, data center developers, and DER companies to implement effective solutions. Additionally, it highlights the need for regulatory updates to enable fair participation of DERs in energy markets, which could unlock significant capacity and enhance grid resilience. Overall, the DERs-for-DCs approach offers a win-win scenario for stakeholders, promoting economic development and clean energy adoption while ensuring reliable power supply for data centers.