Virginia is home to the world’s largest data centre cluster, where energy companies have long faced the formidable task of managing intense competition for power and connectivity. The state, which was at the forefront of the data centre boom, has recently implemented a special tax aimed at funding electricity infrastructure to alleviate household energy bills.
Power
The question arises: will the reliance on diesel generators and other fossil fuel sources for backup power extend to other regions? According to energy research institutes and international organizations, data centre clusters pose significant challenges for electricity grid operators, challenges that are expected to intensify with the growing production and use of AI.
A 2024 report by the US energy research organization EPRI cautions that new computation-intensive capabilities, such as image, audio, and video generation, are without precedent. The report identifies the emergence of exceptionally large “point loads”—areas with concentrated, large-scale electricity demand—as a critical risk for grid managers and local users. The International Energy Agency notes that, due to long grid connection delays, data centre operators are increasingly adopting a “bring-your-own-power” approach with onsite gas power plants.
Scarce
In the UK, data centre clusters are much smaller compared to those in the US, but energy systems experts believe there are lessons to be learned from issues faced by PJM. James Sumnall, an energy analyst at Energy Systems Catapult, told The Ecologist that “clustering” is relevant in the UK as well, since data centres often locate where there is suitable land and robust fibre and grid connectivity, potentially competing with other local infrastructure priorities and leading to opposition. He further noted that the pressures are mainly local, depending on where demand is situated and its growth rate. London and parts of the South East already face limited spare capacity in the energy network, which can lead to operational stress and tough trade-offs.
Moreover, competition for scarce water resources during heatwaves presents another kind of dilemma in regions with large data centre clusters.
Drought-stricken
Increases in water and power demand at data centres often coincide with heatwaves, making it difficult to separate the two. Operating costly servers and IT equipment in high temperatures heightens the risk of malfunctions, prompting data centre operators to turn on cooling systems just as the demand for air conditioning surges in homes, hospitals, and offices. This challenge is more pronounced for data centres running AI workloads, which consume significantly more energy.
Criticism over data centre water use has led some large operators to implement “waterless” cooling systems, which consume less water onsite than evaporative systems but require more water at the power source. Heatwaves across Europe this summer have caused water levels in drought-affected rivers to drop, forcing power stations relying on river water for cooling to shut down.
Divert
The UK’s electricity grid frequently depends on its interconnection with France to balance supply and demand. However, with one-fifth of French nuclear power stations offline in August due to drought, the challenges for operator NESO are increasing. Even prior to recent heatwaves, NESO implemented emergency measures to safeguard the UK’s electricity supplies, sparking a political dispute and accusations from a Tory shadow minister of a “cover-up” regarding blackout risks.
Debate is also intensifying around proposals to integrate the UK’s data centre backup generators into “demand flexibility” schemes. Meanwhile, the rush to construct new data centres threatens the expansion of renewable power generation, according to a key energy industry body. Energy UK warned that the rapid pace of data centre expansion risks imposing “sudden and intense pressure on the electricity system.” The government’s plans to prioritize data centre access to network capacity “could divert resources away from the essential reinforcement needed to connect renewable generation projects,” the statement added.
This Author
Anne Alexander is a journalist and researcher. She is currently working on a project with Watershed Investigations exploring the impact of data centres and the AI industry on the living planet.
