Did you know U.S. Regulators Question Data Center Locations at Power Plants?
Did you know U.S. Regulators Question Data Center Locations at Power Plants?
U.S. regulators, particularly the Federal Energy Regulatory Commission (FERC), are raising concerns about the growing trend of placing energy-intensive data centers near power plants. This trend, known as co-location, allows tech companies to quickly access substantial amounts of electricity, essential for powering advanced technologies like generative AI. However, this arrangement has sparked worries over potential reliability issues and increased electricity costs for consumers, as these data centers might divert power that would typically support the grid. The FERC is considering new guidelines for these arrangements, which could affect who bears the costs for infrastructure upgrades and how agreements are structured, amid ongoing regulatory disputes over specific data center projects, including one involving Amazon and Talen Energy.i. U.S. regulators, particularly the Federal Energy Regulatory Commission (FERC), are raising concerns about the growing trend of placing energy-intensive data centers near power plants. This trend, known as co-location, allows tech companies to quickly access substantial amounts of electricity, essential for powering advanced technologies like generative AI. However, this arrangement has sparked worries over potential reliability issues and increased electricity costs for consumers, as these data centers might divert power that would typically support the grid. The FERC is considering new guidelines for these arrangements, which could affect who bears the costs for infrastructure upgrades and how agreements are structured, amid ongoing regulatory disputes over specific data center projects, including one involving Amazon and Talen Energy.
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